Many people register their businesses as limited liability companies (LLCs). This is a significant first step in protecting your assets and reducing liability. According to recent statistics, as many as 17 million small businesses opened in 2022. But unfortunately, the LLC structure typically only protects the owner’s personal property from lawsuits, and even that protection is limited.
While the good news is that an LLC will protect your assets and ensure that they are treated separately from your business, your business may still need additional insurance policies.
Unfortunately, there are a few situations in which you could still be held personally responsible. Luckily, Cole Harrison Insurance in Maine has been helping small businesses fill those coverage gaps and we will make sure you have the coverage you need so you can rest easy. Keep reading to find out more.
What Are The Limits Of Limited Liability?
The protection offered by an LLC structure does not cover every situation you might encounter as a business owner. Some examples include mixing personal expenses with your business expenses. What happens if you injure someone? What happens if something you have done is considered irresponsible or has been found negligent? What happens if you do not deposit taxes withheld from employee wages correctly? There can be many things that can go wrong with only basic coverage. In addition, there is still a long list of ways you can get sued, even when you’re not at fault. Litigation can mean costly court fees and lawyer expenses, as well as risking your company’s reputation.
What Insurance Is Required?
If your business is just you, you may not need workers’ compensation insurance, but you will probably need more property and liability insurance as you add employees. If you are unsure which types of insurance are optional, the experts at Cole Harrison Insurance are here to help you understand what’s right for your business.
What Are The Advantages Of Incorporating?
Another option for LLC owners is to Incorporate. Many business owners start with a limited liability company and then choose to incorporate it. The main difference that separates a corporation from other types of business structures is that a corporation is a separate legal entity from its owners. However, you can still benefit from limited liability coverage and a continuance, which means it has an unlimited life span. And it can offer you more flexibility with your income.
How Can Cole Harrison Help?
If you would like to learn more about a limited liability company (LLC) for commercial insurance or incorporating your LLC. One of our knowledgeable agents at Cole Harrison Insurance can help. We’ve been serving businesses in Maine for more than 75 years, and we’d love to help yours, too; contact us at one of our three locations today to get started.