If you’re among the many New Jersey residents looking to launch a new business in the New Year, you may be in search of new business insurance in Princeton NJ. Before you begin your search, however, it’s important to separate insurance provider fact from fiction. Here’s a look at some of the most common insurance misconceptions as they relate to small businesses.
Misconception 1: Small Companies Don’t Need Insurance
Simply put, small business aren’t immune to fraud, natural disasters or workers’ compensation lawsuits, among other potentially pricy problems. In fact, when it comes to flooding, fires and other natural disasters, about 40 percent of all affected small businesses fail to ever reopen (source: Federal Emergency Management Agency). In other words, businesses of all sizes face some serious hurdles, many of which would lead them to fold if it weren’t for the protection insurance provides.
Misconception 2: Incorporated Companies Don’t Need Small Business Insurance
If you choose to establish a limited liability company, you are in essence separating your personal assets from those of your business. While this offers you some degree of personal protection, your company can still be sued should a disgruntled client, customer or employee decide to come after you.
In short, if you’re considering opening your own business in the coming year, new business insurance in Princeton NJ is essential. Speak to your insurance provider to make sure you and your business are properly protected in all necessary areas.