Legal Question in Business Law in New Jersey

Hi, I have a dropshipping ecommerce business, and it is set up as a sole proprietorship. So I wanted to know what kind of liability insurance I would require for my business. Would it be only product liability insurance, or would I need any other kind.

Asked on 7/04/19, 1:27 pm

1 Answer from Attorneys

Roman Fichman Esq. Law Practice of Roman Fichman Esq.

In actuality a sole proprietorship is not a "business" that "is set up". Rather, it's just you conducting business either under your own name or a fictitious name (i.e. dba). This means that you are PERSONALLY liable to any problem with the "business". Though having insurance is important, the first step to protect yourself is to create a business entity that will limit your liability. After that you indeed should consider different types of insurance coverage depending on your business activities.

Clients who retain me to create an entity also get advice about insurance coverage and other general business law guidelines included free of charge. The good news is that the cost of creating an entity is relatively low and the benefits are innumerable.

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Answered on 7/08/19, 11:54 am

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