Business Insurance

FYI: Business insurance isn’t always enough.
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One question I ALWAYS ask my clients is: Do you have business have insurance?⠀
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Because as business owners, we must be aware of the “L” word: LIABILITY. ⠀
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Put a pin in this one because it’s really important. ⠀
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Business owners, I want to shout this to you from the rooftops!

You cannot hide from dealing with liability.‼️⠀
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Because when you do, you’re putting your business (and yourself) at risk. ⠀
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Here are the most common ways to avoid liability on behalf of your business:⠀
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1. Business Insurance⠀
2. A Formal Business Entity (LLC, Corporation, etc.)⠀
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General business insurance *typically* covers things like your potential financial responsibility if another person or their property is injured or damaged. BUT, check your policy limits, because business insurance won’t cover everything (here are some examples):⠀
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• Professional errors;⠀
• Breach of contract;⠀
• Employee discrimination lawsuits;⠀
• Even if insurance “covers” you in a lawsuit, they may not cover you 100%;⠀
• And your insurance could drop you/refuse to cover you. (Yes this happens)⠀
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This is where a formal business entity comes in to save the day.
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An LLC or a Corporation is your legal bubble.⠀
An LLC or a Corporation will prevent a plaintiff (the person that files a lawsuit) from being able to sue you & from going after your personal assets. ⠀
If you have the protection of a formal entity, you and your personal assets (home, car, bank accounts, garnished wages) will be shielded from personal liability (absent a situation like fraud). ⠀
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Now ask yourself: are you properly protecting your business? ⠀
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*Disclaimer* This post is strictly for general informational purposes only and is not intended to constitute legal advice.