When you start a business, please make sure you do not set-up as Sole-Proprietorship. When you are set up as a Sole-Proprietorship, your creditors can go after your business assets as well as your personal assets. You should always set up the business entity as Partnership, Limited Liability Partnership (LLC) , S Corporation or C Corporation so that you are only limited the liability up to the worth of the business and your personal assets will not be liable related to any lawsuits.
General Liability or Professional Liability coverage will protect you when you are being sued due to negligence. As your business grows and your business assets increase, you may want to add Commercial Umbrella coverage to give you extra liability protection from your basic liability coverage.(Please note: Cash value from life insurance policy and retirement savings are protected from the creditors. That is a good reason to diversify your portfolio and allocate some of your capital in these Asset classes.)
Comentarios