Regardless of whether a business owns or rents the property and building(s) where it operates, it should carry property insurance.

The basic property insurance needed to protect a New Jersey business and its contents is called "fire and allied lines" insurance. Property policies cover commercial losses associated with fire, smoke and other specific perils, including storms and riots.

In addition to basic property insurance, business owners also can buy:

• Business interruption insurance -- covers the loss of earnings when property is damaged and the business is unable to operate as a result of one of the covered perils.
  
  
• Crime insurance -- covers the loss of money and securities caused by destruction and disappearance. It also covers business property against burglary, robbery and theft.
  
  
• Dishonesty insurance or fidelity bond -- covers losses caused by the dishonest acts of employees.
  
  
• Inland marine floater insurance -- covers movable business property, including cargo in transit, contractors' equipment and valuable papers. Inland marine floater policies cover special types of property, to which the basic property policy does not apply, against a broad range of common perils. International businesses need ocean marine insurance for cargo in transit on ships.

Business owners carry liability insurance for protection against lawsuits arising out of their operations, services or products. Liability insurance also protects a business from negligence on the part of its owners, its employees or the business itself.

General liability insurance protects a business against bodily injury and property damage to others in connection with its premises, operations or products. Other forms of liability insurance protect business owners from the consequences of negligence in special circumstances. Such forms include:

• Automobile liability insurance -- covers a business against negligent acts involving the use of a motor vehicle in business. All registered commercial motor vehicles are required by state law to be covered by liability insurance.
  
  
• Professional liability insurance -- covers a person or business, possessed of specialized knowledge or skills, against failure to perform in a manner considered prudent for that profession or industry. Malpractice insurance for doctors, dentists and nurses is one form of professional liability insurance. Other forms are available for architects, accountants, engineers, attorneys and even insurance agents.
  
  
• Directors and officers (D&O) liability insurance -- protects company principals from losses arising out of mismanagement, and allows them to make business decisions without fear of personal losses from lawsuits.

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