4 Frequently Asked Questions About Coastal Business Insurance

New Jersey is a great place to live and work, but compared to other states, it’s at a significantly higher risk for a wide range of damages thanks to its coastal location.

So if you work in New Jersey, you may want to take a minute to consider purchasing a coastal business insurance plan. It’s a policy type that can provide you with specific protections that are especially helpful to those businesses that are located on or near the coast.

If you want to learn more about what coastal business insurance is, whether it includes flood coverage, how much it costs, and more, keep on reading and contact one of our top-tier agents today.

What is Coastal Business Insurance?

Coastal business insurance is a specific insurance type that can provide coastal businesses with certain protections. Generally, this includes insurance coverage for both the building and its contents including valuable papers, computers, and money. Additionally, it may provide coverage to offset lost income due to business interruption.

It’s important to note that there are different tiers of protection when it comes to coastal business insurance. Some options won’t provide coverage for specific weather-related events including windstorms and hail.

Does Coastal Business Insurance Cover Flood Insurance?

Your coastal business insurance policy can provide you with many excellent coverage options. Unfortunately, in many cases, it won’t provide you with protection against floods. For that, you will need to take out a flood-specific insurance policy.

Flooding can happen anywhere–especially if your business is located near a massive body of water like an ocean, lake, or river–so investing in the right flood insurance is vital. Flood insurance can grant you assistance if your building’s structural integrity is damaged by flooding. This can include repairing or replacing walls, floors, and any other fixed structures. It can also work to help you replace drywall, carpets, and other items that may add up to a hefty bill without the right insurance.

What Additional Insurance Policy Types Should I Bundle with Coastal Business Insurance?

There are several insurance options that can significantly improve your coastal business’ financial protections. Among these include general liability, commercial property insurance, commercial umbrella insurance, and others.

General Liability Insurance

General liability insurance is one of the most important insurance options a business can invest in. It can help offset financial stressors that relate mostly to bodily injury claims and property damages. Typically, it works best when paired with a product liability policy if your business operates primarily by providing customers with products rather than services as general liability cannot offer all of the protections for products that product liability insurance can.

Professional Liability Insurance

Professional liability insurance, or errors and omissions insurance, works to cover mistakes in the professional business services your company provides. It can help cover legal expenses if you’re sued and help you save money when faced with claims costs that relate to a particular case.

Commercial Property Insurance

While many different insurance policies can help you recoup your losses if your business’ building is damaged, each works only in very specific instances, so you must invest in the right property coverage. 

Commercial property insurance is one of the broadest property insurance types, and it’s primarily used to protect you against losses that relate to damage to your rental property, rented equipment, and the thefts of your business’s property including computers.

Worker’s Compensation Insurance

One insurance type that is required in most states and recommended in many others is worker’s compensation insurance. This insurance type doesn’t provide protections for your physical building or property. Rather, it helps your employees offset costs relating to expensive medical bills if they are injured or become sick at work.

The cost of a worker’s compensation insurance plan will vary depending on the kind of work you do and how risky it is determined to be. For example, if you run an ice cream shack on a pier, you may have higher rates than an ice cream parlor built on solid ground as your employees may face extra hazards.

Flood Insurance

If you work anywhere near the coast, you need a good flood insurance policy. The risk of flood is always real, but it’s even higher when you live and work near great bodies of water. By investing in flood insurance, you give yourself a leg up with extra finances that you can use to reduce the costs of replacing damaged walls and floors as well as smaller items like rugs and equipment. 

Commercial Umbrella Insurance

One of the best catch-all insurance types that a business can invest in is commercial umbrella insurance. This insurance type works to extend the limits of your pre-existing liability policies to make sure you have sufficient protection for each one. However, commercial umbrella insurance doesn’t provide extensions for all policy types, so it’s important to do your research ahead of time to make sure you’re getting the extended coverage you need.

How Much Does Coastal Business Insurance Cost?

As with the majority of insurance options for businesses, the cost of your coastal business insurance policy will depend heavily on the amount of coverage you need, your unique risk factors, and several other factors.

The best way to determine your estimated fee is to contact your insurance provider or speak with one of our skilled agents. We can help you learn more about coastal business insurance and help you get the right coverage today.