Why Every Business Needs Earthquake Insurance in NJ

When most New Jersey business owners think about natural disaster risks, hurricanes and flooding likely come to mind first. However, recent studies suggest that New Jersey may be situated on an active fault line, underscoring the urgent need for proactive safety measures. For comprehensive business protection, commercial earthquake insurance is a necessity you can’t afford to overlook.

New Jersey: More Earthquake-Prone Than You Might Think

New Jersey’s low seismic profile belies its active geological history. In 2024, the state experienced a 4.8-magnitude earthquake, the first of this magnitude in over 240 years. The quake rattled commercial corridors from Newark to NYC, demonstrating that seismic risks are real and present. 

With subsurface fault zones like the Ramapo, North and Central Jersey face ongoing risks from moderate earthquakes. They’re powerful enough to cause structural damage, equipment failure, and inventory loss.

Standard Policies Don’t Cover Quakes

One of the most critical misconceptions among business owners is that their existing commercial property or business owner’s policy will cover earthquake-related damage. The truth is that typical commercial insurance policies specifically exclude earthquake damage.

This coverage gap can be financially devastating, particularly for small and medium-sized businesses that may not have substantial cash reserves to handle unexpected major expenses. Without a separate commercial earthquake insurance policy, the business owner would be responsible for the entire cost of rebuilding damaged structures, replacing equipment, and recovering lost revenue. 

Even seemingly minor earthquake damage can quickly escalate into tens of thousands of dollars in repair costs, not to mention the potential for extended business interruptions that can impact revenue for weeks or months. 

What Earthquake Insurance Covers

Commercial earthquake insurance in NJ is often surprisingly affordable and customized to your property and needs. It’s a practical addition to any risk strategy, typically costing a small fraction of your building’s value and far less than post-quake recovery. 

Key coverage areas include:

• Structural damage to buildings and foundations
• Equipment and machinery protection for essential business assets
• Inventory replacement costs for damaged or destroyed goods
• Business interruption benefits that compensate for lost income during recovery periods

The specific coverage details can vary between policies and insurance providers. Working with a knowledgeable advisor, such as Dickstein Insurance, is crucial for securing appropriate protection. A skilled insurance professional can assess your business’s unique risk profile, recommend optimal coverage limits, and help structure a policy that addresses your specific vulnerabilities.

Beyond basic structural and equipment coverage, many commercial earthquake insurance policies also include additional benefits such as debris removal, building code upgrade coverage, and extra expenses for temporary relocation during repairs.

Be Proactive With Coverage

Proactive earthquake insurance planning is crucial. Once seismic activity occurs, it’s too late to purchase coverage for the resulting damage. Insurance companies impose waiting periods and exclude coverage for damage from events that occur shortly after policy inception, making planning essential for adequate protection.

Effective risk planning requires a comprehensive assessment of your business’s seismic vulnerability. Key factors to consider include:

• Building construction type and age of your facilities
• Location factors such as proximity to known fault lines
• Operational dependencies and potential supply chain disruptions
• Emergency response planning and employee safety protocols

Secure Peace of Mind With Dickstein

At Dickstein Insurance, we specialize in providing customized, cost-effective earthquake coverage solutions specifically designed for New Jersey businesses across various industries. Our experienced team understands the unique seismic risks that companies in the region face and can recommend appropriate coverage options that balance comprehensive protection with budget considerations.

We also stay current with industry developments and regulatory changes that might affect your coverage needs. Our goal is to safeguard your business with a robust protection portfolio while also offering mitigation tips and proactive insights to keep your costs low.

Please don’t wait until it’s too late to protect your business investment from earthquake-related risks. Contact Dickstein Insurance today for a comprehensive quote and risk evaluation that will help safeguard your company’s future. 

About Dickstein Associates Agency

We recognize the significance of providing a protective shield for your home. At Dickstein Associates Agency, we work closely with homeowners to tailor policies to their specific needs, utilizing a range of customizable dwelling coverages. We’ll review your options for acquiring the most appropriate homeowners insurance for your needs. Contact us today! Or, call (866) 754-6511 for immediate assistance.