Insurance & Asset Protection

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Coverage for Defective Property

When deciding on the types of fire/hazard property insurance coverage for a small business, an owner needs to consider a number of policy variables.

General and Specialized Property Policies

Insurance is the last line of defense for a small business owner executing an asset protection plan. So once an owner has a basic understanding of some general coverage guidelines, it's time to choose the types of policies.

Automobile Liability Insurance

A small business owner may need to purchase specialized liability insurance to cover gaps in a comprehensive general liability policy.

Automobile Property Insurance

Of the various types of property insurance available to a small business owner, a policy covering the use of automobiles is one of the most common.

Cyberspace Liability Insurance

A small business owner may need to purchase specialized liability insurance to cover gaps in a comprehensive general liability policy.

E&O Liability or Malpractice Insurance

A small business owner may need to purchase specialized liability insurance to cover gaps in a comprehensive general liability policy.

Common Elements and Exclusions

Before deciding on the type of comprehensive general liability insurance for a small business, an owner needs to understand some basic information on what these policies cover.

Directors and Officers Liability Insurance

A small business owner may need to purchase specialized liability insurance to cover gaps in a comprehensive general liability policy.

Comprehensive General Liability Insurance

Of the two main types of liability insurance, the comprehensive general policy is the primary form of coverage for small business owners seeking to use insurance as a last resort in their asset protection planning.

Specialized Liability Policies

When choosing from the types of liability insurance available, the small business owner may need specialized forms of liability insurance that will cover exclusions from a standard comprehensive general liability policy.

Court Interpretation of Coverage and Exclusions

Selecting the types and levels of insurance is vitally important to a small business owner seeking to avoid day-to-day liability risks. So an owner should follow some general insurance guidelines if he or she wants to take full advantage of the protections purchased.

General and Specialized Liability Policies

Insurance is the last line of defense for a small business owner executing an asset protection plan. So once an owner has a basic understanding of some general coverage guidelines, it's time to choose the types of policies.

Use the Threat of a Bad-Faith Claim

Selecting the types and levels of insurance is vitally important to a small business owner seeking to avoid day-to-day liability risks. So an owner should follow some general insurance guidelines if he or she wants to take full advantage of the protections purchased.

Factor Liability Insurance into Insolvency Tests

Selecting the types and levels of insurance is vitally important to a small business owner seeking to avoid day-to-day liability risks. So an owner should follow some general insurance guidelines if he or she wants to take full advantage of the protections purchased.

Rely on Another Party's Insurance

Selecting the types and levels of insurance is vitally important to a small business owner seeking to avoid day-to-day liability risks. So an owner should follow some general insurance guidelines if he or she wants to take full advantage of the protections purchased.

Indemnification by Other Parties

Selecting the types and levels of insurance is vitally important to a small business owner seeking to avoid day-to-day liability risks. So an owner should follow some general insurance guidelines if he or she wants to take full advantage of the protections purchased.

Retain Insurance Policies Indefinitely

Selecting the types and levels of insurance is vitally important to a small business owner seeking to avoid day-to-day liability risks. So an owner should follow some general insurance guidelines if he or she wants to take full advantage of the protections purchased.

Enforce the Duty To Defend Clause

Selecting the types and levels of insurance is vitally important to a small business owner seeking to avoid day-to-day liability risks. So an owner should follow some general insurance guidelines if he or she wants to take full advantage of the protections purchased.

Give Prompt Verbal and Written Notice of a Claim

Selecting the types and levels of insurance is vitally important to a small business owner seeking to avoid day-to-day liability risks. So an owner should follow some general insurance guidelines if he or she wants to take full advantage of the protections purchased.

Engage in Asset Protection Planning

The civil litigation system itself represents a significant risk factor and exposure to liability. Therefore, it is important that small business owners employ the various strategies that allow them to control the risk factors in litigation.

Understanding Insurance Coverage

Insurance is the last line of defense for a small business owner executing a comprehensive asset protection plan. In order to make wise decisions regarding its use, an owner needs to have an understanding of how insurance will--or will not--offer this valuable protection.

Compare Premiums and Policies Beforehand

Selecting the types and levels of insurance is vitally important to a small business owner seeking to avoid day-to-day liability risks. So an owner should follow some general insurance guidelines if he or she wants to take full advantage of the protections purchased.

Insurance: The Protection of Last Resort

Ideally, the small business owner will structure the business to limit liability and then execute strategies to avoid day-to-day liability risks. As a result, it is hoped that claims will not be made or, if claims occur, the claimants will be unable to satisfy their claims from the business owner's personal or business assets. The asset protection strategies advocated throughout this small business guide are based on these principles.

Enlist State or Federal Government Assistance

The civil litigation system itself represents a significant risk factor and exposure to liability. Therefore, it is important that small business owners employ the various strategies that allow them to control the risk factors in litigation.

Choose Liability Insurance Effectively

The civil litigation system itself represents a significant risk factor and exposure to liability. Therefore, it is important that small business owners employ the various strategies that allow them to control the risk factors in litigation.