{"id":71,"date":"2025-11-26T12:00:00","date_gmt":"2025-11-26T18:00:00","guid":{"rendered":"https:\/\/www.msminsuranceagency.com\/blog\/?p=71"},"modified":"2025-11-14T12:34:57","modified_gmt":"2025-11-14T18:34:57","slug":"does-commercial-insurance-prevent-personal-liability","status":"publish","type":"post","link":"https:\/\/www.msminsuranceagency.com\/blog\/does-commercial-insurance-prevent-personal-liability\/","title":{"rendered":"Does Commercial Insurance Prevent Personal Liability?"},"content":{"rendered":"

If you aren’t sure whether business or commercial insurance eliminates the potential for personal liability, rest easy. You are not alone. Learn more about protecting your assets while running a business.<\/p>\n

Be Safe Instead of Sorry<\/h2>\n

One way to protect your money and assets when running a business is to structure the enterprise as a limited liability company or LLC for short. As the name indicates, personal liability is limited when running this type of business.<\/p>\n

Commercial insurance also helps mitigate risk. Protect your Kearny, NJ business with extensive commercial insurance through MSM Insurance Agency Inc. and you’ll operate with full confidence. This way, if something goes wrong, such as an on-site injury or defective product, a lawsuit won’t bankrupt you or the business.<\/p>\n

The Issue of Personal Liability<\/h2>\n

If you move forward without insurance and your business is in your name, your personal assets could be at risk. That means a lost lawsuit will put your savings, investments, home, business and other assets in jeopardy. <\/p>\n

When in doubt, choose a fully insured LLC over a general partnership or sole proprietorship. However, even if you move forward with a non-LLC, comprehensive commercial insurance will help you maximize your protection.<\/p>\n

Insurance Protects Against Different Types of Liability<\/h2>\n

Two primary types of liability for business owners are contractual liability and tort liability. "Tort" is a legal term used to refer to a wrong done to another party. For example, a defective product or a dangerous storefront that causes injury may be considered torts.<\/p>\n

Insurance provides legal protection against both tort and contractual liability. This way, if it is proven your business violated a contract or caused a tortious wrong, your insurance coverage will be applicable. <\/p>\n

Though insurance doesn’t always cover the entirety of damages after a lost lawsuit, it minimizes the financial impact. The underlying purpose of commercial insurance is to keep your business humming along like a well-oiled machine even if it loses one or more lawsuits.<\/p>\n

Contact MSM Insurance Agency Inc. <\/h2>\n

Serving Kearny, NJ and surrounding areas, we make it easy for you to protect your business so you can get back to running your business. Give us a call today.<\/p>\n","protected":false},"excerpt":{"rendered":"

If you aren’t sure whether business or commercial insurance eliminates the potential for personal liability, rest easy. You are not alone. Learn more about protecting your assets while running a business. Be Safe Instead of Sorry One way to protect your money and assets when running a business is to structure the enterprise as a […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[33,17,25,10,22],"class_list":["post-71","post","type-post","status-publish","format-standard","hentry","category-commercial-insurance","tag-commercial","tag-insurance","tag-kearny","tag-msm-insurance-agency-inc","tag-nj"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t