Before opening the doors to your new business, make sure you are properly protecting your company. One of the best ways to do so is to purchase the proper insurance coverage. Here are three insurance products you should consider, as business in a New Jersey: errors and omission liability, business owner’s policy and data breach insurance.
1. Errors and Omission Liability Insurance
If you make a professional error that damages a client’s business and the client decides to sue, this policy will help you cover legal costs and judgments associated with the lawsuit. Sometimes called professional liability insurance, an E&O policy can also help pay legal costs when a client files a suit because of missed deadlines, employee mistakes, incomplete work and other negligence. Most general liability policies will not cover work performed on the job.
2. Business Owner’s Policy Insurance
This coverage, sometimes called BOP insurance, combines general liability and business property insurance into one policy. The bundled insurance coverage is often less expensive than buying the policies separately. Think of this coverage as your foundational policy.
3. Data Breach Insurance
When you speak with your agent, double check that your E&O coverage doesn’t already include data breach protection. If it doesn’t, and you run an IT company, then consider this policy important. This coverage protects you if your client suffers a data breach that they can somehow tie back to your service.