When you formed your business, you probably decided to make the entity a Limited Liability Corporation (LLC) or Corporation to protect your personal assets. Forming a corporation is a wall between corporate and personal assets. But, be aware, this wall is imperfect and can be challenged or broken through.
Call Nick Heimlich, San Jose corporate attorney today for a free case review.
Business insurance protects you regardless of your corporate status (although if you have a corporation, make sure it is in the corporate name). Business insurance also helps to pay (after any deductible) for many types of loss you can experience as an owner. Another point to consider is that insurance may differ between different types of corporate entities.
Let’s look at a hypothetical business example to see how insurance could be helpful.
A widget store in San Jose just opened inside Santana Row. The widget store sells high-tech phones, electronics, computers, and accessories. It also provides computer service on and offsite for homes and businesses.
- A new customer falls in the widget store and breaks her artificial hip. She is hospitalized and must have a new hip inserted and can’t work for six months.
- What type of coverage is needed? Premises liability insurance.
- A small fire breaks out in the widget store and causes minimal damage but destroys sections of the mall’s common area.
- What type of coverage is needed? Premises liability insurance alongside the mall owners as an additional insured.
- An employee who has worked too diligently gets carpal tunnel from repetitive movement.
- What type of coverage is needed? Workers’ compensation, either through the State Compensation Insurance Fund or a private carrier. In addition, corporate insurance may vary by state. If the injury is legitimate, we encourage you to pressure your carrier to provide medical treatment promptly. Slow treatment can often lead to worse injuries and a much larger claim, which will affect your insurance premiums.
- Max, a widget store team member, is in a hurry to get to his scheduled appointment on time and fails to stop and rear-ends a motorcycle. The motorcyclist is in bad shape and won’t ever be the same.
- What type of coverage is needed? Auto insurance and possibly workers’ compensation. And is the policy big enough? Many people have a minimum policy of $30k-$50k or $100k-$300k. A serious incident could be a multi-million dollar liability. The widget store should have a larger policy for its vehicles.
Generally, there is insurance for most things you can think of, such as:
- Business Income
- General Commercial
- Health, Dental, Vision
- Job Injuries (Work Compensation) for employees
- Premises Liability
- Director and Officer Insurance
- Credit Insurance
- Property Insurance
- Title Insurance
- Liability Insurance
- Employment Practices Liability Insurance
Make sure your insurance policy covers not only paying for any settlement but also the full cost of providing an attorney. Many do, but you should check your policy for deductibles or other expenses.
Contact Nick Heimlich Law Today
Hire an experienced attorney to protect your business. We can advise you on how to ensure that you are not personally liable for unforeseen accidents and can address many other legal issues your business may face.