July 16, 2003

Limit Your Liability to Protect Your Assets

If your business into serious difficulties, will bring you disappointed? For example, if an employee received a serious car accident at the same time work for you? Action would result in your personal bankruptcy?

Here is just protecting themselves against catastrophic losses and lawsuits some of their own way.

Into your business

Insurance can give you some of the loss. However, you may suffer business losses, but not fully covered by insurance litigation. How to do?

An extra level of protection is available through the formation of his own company. Even into their own will lead to additional procedures and costs, it may be the best insurance you bought.

This is because the company is a separate legal entity or individuals. Even though you may have company, if the company's business, it is to be prosecuted or subjected to loss companies.

If, for example, the company has a serious business losses, caused by the inability to pay debts, the company would be bankrupt. You, as a shareholder, will lose your investment in the company, but generally not for its debt, any responsible. Therefore, you will not sell your home or other personal assets to pay for the company's single responsibility.

On the other hand, there are directors of the company's accountability responsibilities, if they take a responsible Mickelson's case. You can `t hide behind a company, criminal acts, and hope to avoid responsibility.

To obtain adequate insurance

If someone in your home alone sidewalk and hurt himself, he can sue for compensation for you. Your tenant `s or homeowner policies may include single, In this case, your responsibility.

However, if your customer is who, and his access to your home-based business? You need to pay extra on your home insurance with business use of the driver. This additional coverage is worth the additional costs.

If you use vehicles for commercial purposes to ensure it. Some people believe that they were spending from cars clever writing income tax purposes, but also not informing the insurance company, the car is for commercial use.

This is wrong. If you have the opportunity to an accident, police and insurance investigators will certainly find that you have vehicles used for commercial purposes. If you do not `re-payment of business coverage, why the insurance company pay for your requirements?

In addition, what do you think the income tax auditor would think that the requirements of vehicles operating expenses, your policy only shows that individual security? To avoid this tax additional risk.

Will need to obtain the required workers `compensation range. Some people have been responsible for all of the injured worker's medical and other costs, and a fine not obey the law. These costs can be quite large, and even bankrupt you.

Contemplating the acquisition of product liability insurance. This not only applies to any product that you produce, but also for your products sold by others.

To protect themselves in the legal agreement

Properly drafted written agreements can protect you in many ways. First of all, they can sometimes prevent misunderstandings that could cause legal issues. Second, they may limit your risk and loss litigation.

The contract may provide for restrictions, including restrictions on your work and areas of responsibility and liability risks, through arbitration, rather than through the courts in disputes and sets out the maximum amount of damages shall not exceed the contract amount.

A special area, pay attention to the Internet. There are many legal implications, including issues affecting children, privacy Web site, profit requirements, and unsolicited e-mail ( "spam"). Certain agreements and notice on the website may help protect you.

To prevent catastrophic losses and lawsuits themselves. Today, to take steps to protect your assets, limit the risk of liability.