Starting a new business often means that the owner exists for months being frugal, investing whatever income is earned straight back into business development projects. This is a precarious business model, and an unexpected, unplanned expense can threaten the very existence of an enterprise if it does not have a steady flow of cash or a reserve of capital. It’s important for a new business owner to consider purchasing NJ liability insurance to cover the risk of lawsuits being filed claiming damages.
There are different types of liability insurance products designed for the particular risks faced by various businesses. General liability insurance helps to protect a business from damage that can be caused to a third party or to the property of a third party. Owners of retail stores often carry general liability insurance for the risk of someone being injured by tripping and falling in their business premises.
Professional liability protects a business, its owners and employees from the risk of lawsuits brought by customers who claim to have suffered harm because of mistakes made in the course of providing services. Businesses such as accountancy practices and beauty salons are among the types of enterprise that often carry professional liability insurance.
An uninsured lawsuit could cost a business dearly. Liability insurance protects the business owner’s investment, allowing judgments awarded against the business to be paid by the insurer rather than from business funds – up to the limit of coverage. Talk to your insurer or agent about NJ liability insurance if you wish to protect yourself from the cost of lawsuits.