The navigation should be closed any time a user clicks anywhere on the body - not just navigation elements. Say menu is open, but user clicks in the page body. User expects to see menu close.
You also have to make sure toggle button is visible, otherwise a jump is seen in menu.
$(document).ready(function() {
$("body").click(function(event) {
// only do this if navigation is visible, otherwise you see jump in navigation while collapse() is called
if ($(".navbar-collapse").is(":visible") && $(".navbar-toggle").is(":visible") ) {
$('.navbar-collapse').collapse('toggle');
}
});
});