411: What Young Professionals Need to Know About Liability
Starting a business can be a fun and exciting process that can lead to personal advancement and financial success. When launching a business, it is important to plan for potential problems. So, that you will be able to adapt effectively when challenges arise. In the event of a lawsuit, you and your business could become liable for millions of dollars in damages. This could cripple your ability to do business. You should, therefore, plan ahead for the possibility of unforeseen legal liabilities. Do this with a comprehensive insurance program that protects both you and your business.
Importance of Insurance
Many entrepreneurs make the mistake of assuming that they can forego liability insurance until their business matures. That no one is requiring you to be insured. In theory, registered business entities are supposed to offer limited liability protection. This protects shareholders from losses in excess of initial contributions. The reality is, however, courts often hold the active directors of a business liable for damages in the event of a lawsuit. Even if you are not subjected to personal liability, you could still be forced to declare your business bankrupt and lose everything you put into your business. You should, therefore, ensure that you maintain effective liability coverage so that you will be protected from the possibility of astronomical financial losses.
What Your Policy Should Cover
Not all insurance policies are the same, so be sure that you do your due diligence to find a policy that is right for you. When searching for insurance, you should look for a full service brokerage that can develop a customized insurance program designed to fit your needs. Your insurance policy should cover claims related to property damage, bodily injury, and professional mistakes. It is also important to make sure that your policy offers a high protection limit. This ensures you will be covered in the event of a serious lawsuit.
How Walterry Can Help
Walterry Insurance Brokers is a full service brokerage that works closely with business clients to identify insurance policies that match their needs. By taking the time to get to know you and your business, they will find the solution for your situation.