Fireworks: Proceed with Caution

Everyone knows fireworks can be fun, especially this time of year, but a lot of people don’t take into account the negative repercussions those pyrotechnic devices can bring.

The first problem: They're illegal in New Jersey along with many other states in the U.S. If you’re caught selling, owning or using fireworks within a state in which they’re illegal, you’ll undergo certain penalties determined by your state.

Besides the legal aspect, you always run the risk of someone getting hurt or property being damaged by using fireworks. A few people setting off fireworks in your backyard for summer fun could result in damage to your home, damage to your neighbor’s home or someone in the vicinity getting seriously injured.

If such instances occur, you could be liable for repairs, medical expenses or even legal attorney fees to defend yourself in a personal injury lawsuit case. That, in effect, means that there are a number of things at stake including:

• Your savings
• Equity in your home
• Equity in your business
• Your investments
• A portion of your future earnings

Bottom line: Most illegal activities are not covered by insurance and will cost you a lot of money if something goes wrong.

Unfortunately for fireworks lovers living in states in which they're illegal, you cannot get insurance coverage for this unless you have a pyrotechnic operator's license. But even with that license, coverage is likely very expensive.

If fireworks are legal in your state, you should check your home insurance and personal umbrella liability policy exclusions very carefully, as coverage may still not be there for you.

Fireworks fans beware...