Towing Equipment Search:

Limiting Liabilities

Nov 20th, 2015 | By | Category: Jack Schrock's Blog

Jack SchrockFirst, you need to speak to an attorney about separating business from personal and then protecting both. Also, if you have a partner, you each need to be insulated from the acts of the other because if your partner dies or becomes incapacitated, you could have an unwanted stranger as your new partner. You should also protect yourself from third party liabilities; from a disgruntled employee or customer; from accidents, etc. Remember, it’s not the million dollar judgment that will put you out of business it can be the cost of defending yourself against such a lawsuit. In other words, you can be blameless in a legal action against you and go broke just paying for the legal expense before you ever get to trial and most everybody even remotely involved will be named in the lawsuit. How’s that?

Let’s say an employee is involved in an accident. You are sued for big bucks and promptly drug into court. Your liability insurance has a stated limit which may not cover your loss so you need your own attorney actively involved. Likewise, your business must be shielded from your personal life so one can survive losses to the other. Insurance is good to a point, but think of it as a fire extinguisher. If the blaze is too great, the extinguisher will soon expire and be of no further value. Then, you’re on your own.