If your business runs into serious difficulty, will
it bring you down too? For example, what if one of
your employees got involved in a serious car accident
while working for you? Will the resulting lawsuit
bankrupt you personally?

Here are just a few ways of protecting yourself
against catastrophic losses and lawsuits.

1. Obtain Adequate Insurance Coverage

If someone slips on the sidewalk of your home and
injures himself, he could sue you for damages. Your
tenant`s or homeowner`s policy may cover you for
liability in such an event.

However, what if it is your customer who falls on his
way to visiting your home-based business? You will
need an extra rider on your house insurance to cover
such incidental business use. The extra charge for
this additional coverage is well worth it.

If you use a car for business use, insure it for such.
Some people think that they are being clever writing
off automobile expenses for income tax purposes but
at the same time not informing the insurance company
that the car is being used for business.

This is false economy. If you ever get into an
accident, police and insurance investigators will
certainly find out that you used the vehicle for
business purposes. If you`re not paying for
business coverage, why would the insurance company
cover your claim?

As well, what do you think an income tax auditor would
think of your claimed business expenses on the vehicle
when your insurance policy indicates personal coverage
only? Avoid this additional exposure to tax liability.

Be sure to obtain required workers` compensation
coverage. Some have been held responsible for all the
medical and other expenses of an injured worker, as well
as fines for non-compliance to the law. These costs
can be quite substantial and even bankrupt you.

Consider obtaining product liability insurance. This
applies not just for any products you manufacture but
also for products you sell that are made by others.

2. Incorporate Your Business

Insurance may give you some protection against loss.
However, you may suffer business losses and lawsuits
that may not be covered by your insurance fully. What
then?

An extra level of protection can be obtained by forming
your own corporation. Even though incorporating
yourself will result in extra paperwork and costs, it
could be the best insurance you ever bought.

This is because the corporation is a seperate legal
entity or person. Even though you may own the
corporation, if the corporation operates the business,
it is the corporation that will be sued or suffer loss.

If, for example, the corporation had severe business
losses resulting in debts that could not be repaid,
the corporation would be insolvent. You, as a
shareholder, would lose your investment in the company
but would generally not be responsible for any of its
debts. Thus, you would not have to sell your home or
other personal assets to cover the corporation`s
liabilities.

On the other hand, there are cases where directors of
a corporation can be held responsible for liabilities
if they didn`t act responsibly. You can`t hide behind
a corporation, commit criminal acts and expect to
escape accountability.

For more information about incorporation, visit:
http://www.yenommarketinginc.com/incorporation.html

3. Protect Yourself With Legal Agreements

Properly drafted written agreements can protect you in
many ways. First of all, they can sometimes prevent
misunderstandings that can lead to legal problems.
Secondly, they may limit your exposure to lawsuits and
losses.

Contracts can limit your exposure to liability by
including provisions restricting the scope of your work
and responsibility, having disputes handled by arbitration
rather than through the Courts, and specifying that the
maximum damages payable shall not exceed the amount of
the contract.

A special area to watch out for is the Internet. There
are many laws that impact on websites including
matters affecting children, privacy, earnings claims,
and unsolicited e-mail (”spam”). Certain agreements
and notices on your website may help to protect you.

For more information about Internet law, visit:
http://www.yenommarketinginc.com/internet-law.html

Protect yourself from catastrophic losses and lawsuits.
Take steps today to protect your assets by limiting
your exposure to liability.

J. Stephen Pope, President of Pope Consulting Inc.,
http://www.popeconsultinginc.com/ has been helping
clients to earn maximum business profits for over
twenty-five years.

For valuable Work at Home Small Business Ideas,
visit: http://www.yenommarketinginc.com/

Share This

Anyone who owns a home will, at some point in their ownership, come to realize the importance of their homeowner’s insurance policy. Homeowner’s insurance policies exist to protect both the homeowner and the bank lender, at least for the life of the home’s mortgage.

Basic Policy

The basic homeowner’s insurance policy covers damages done by such disasters as fire and severe storms, including hurricanes and tornados. Damage to your home, property, and possessions are typically the basic elements covered. However, the amount of coverage you carry for each is perhaps the most important aspect of the plan.

Possessions that are lost due to theft are also generally covered, up to a certain percentage of the insurance policy.

Liability coverage is another basic element of a general homeowner’s policy. Liability protection covers the policy holder for damages done to another’s home or property, even the damage done by one’s pet can be included. However, this is only damage done to another’s property. The homeowner’s policy does not cover damage incurred by the policy holder to his or her own property or possessions.

Covering Yourself

Many consumers fail to recognize the pit falls that are inherent in many homeowner’s insurance policies. For the most part, it is generally known that the basic homeowner’s insurance plan does not cover flood damage. While most homeowners consider themselves safe and on dry ground the majority of the time there are many who are at risk. Whether you realize it or not, you might actually live in a flood zone. And then again, even if you do not, when severe disaster hits, such as a hurricane that generates dangerous and inevitable flooding, you might become the unwitting victim of flood damage and the holder of a policy that fails to cover your damages.

Homeowners must be wary when purchasing their homeowners insurance. Make sure you buy from a reputable insurance agent and do not make your policy decisions based solely on getting the bargain basement price. A bargain basement homeowners’ insurance policy will likely fail to cover you when a real disaster strikes. Just a piece of paper on which you have spent money, but now fails you. Buy wisely. Your home and property are your biggest investment and must be regarded as being worth the added protection. Discuss with your insurance agent all the possible circumstances that are truly realistic for your situation. Make sure your general homeowners policy carries plenty of coverage that allows for a total rebuild of your home if necessary and replacement of important possessions. Buy a standalone flood insurance plan if you are advised to do so.

Documentation

Make itemized lists of possessions. Take photographs of treasured family heirlooms and items you would like replaced in like value if they were to become stolen or ruined in a fire or storm. Videotape the rooms of your home, making a visual document that literally walks through your home and property. Then make sure to keep such important documentation safe either in a safety deposit box or in a fire proof safe in your home. Such documentation becomes the only proof when property and possessions are ruined or stolen.

Sara Chambers is a marketing consultant and an internet content manager for
http://www.homeownersinsuranceblog.com

Share This

There are several ways to get a better rate on your boat insurance. Some of them are beyond our control, but others are a matter of personal choice. With a little patience and research, one can improve the rate to a good degree and save a good deal of money in the long run.

Basic improvements to your boat insurance rate are not all that hard to accomplish. The main thing you need is patience. All good things to those who wait as the old saying goes. If waiting is not a problem then there is no reason why you should not be able to get a decent boat insurance quote.

First you should make a good choice on boats. Just like a car, the sportier a boat is the more expensive the insurance will be. For basic purposes you should make every attempt to choose a boat that is as safe as possible. This means that extreme power, giant engines, and lightweight speed increasing designs should be avoided. A pleasure craft is going to make an insurance company far less nervous than that of a true speed demon that will cut the water and make old ladies faint in the wake. There are plenty of nice boats on the market that have all the amenities and nominal speed capabilities that will not make your agent cringe.

Boat value is another factor. If the boat that you choose has an extreme value that you need to insure then you can count on a high insurance quote. To guard against this, make an informed choice when buying a boat. Check several different sellers to make sure that you are getting the best deal possible. This will in effect make your insurance rate go down considerably as the company will have less to cover in the case of an accident or theft.

Being safe is another matter. Most insurance agencies will offer discounts to clients who will take and complete a boating safety course. This will make you a better boater and decrease the chances that you will make a fatal error or judgement call that will end up costing the insurance company lots of money. This will also work to protect you on several levels. Not only will you and the people with you be in better hands with someone who has proper training, you will also have piece of mind that you will not make a poor judgement call at a crucial moment that could cause the loss of your craft. Insurance companies are not the only ones who have something to lose.

Finally, you should contact the company that handles you car and house insurance. Most times, companies will offer deep discounts to those who use them for all of their insurance needs. This will help to protect everyone involved and it may simplify things from a billing standpoint as well. The end result will be more money saved and less complication when time for the payments to be made.

Mansi Gupta recommends that you visit instant boat insurance quote.

Share This