What kind of insurance do I need to get for my company?
To reduce my liability, and what is required?
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Listen to the audio
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In this audio snippet, you'll hear about:
- In certain states, if you do not have adequate insurance, suers could have the right to pierce the corporate veil
Audio Transcript
Travis:
What kind of
insurance do I need to get for my company? I imagine it definitely
depends on what kind of business you're in but can you expand on that a
little more? What kind of insurance I should get to reduce my
liability, what kind of insurance is required for me to have and
such...
Yosef:
Well, Travis, let me ask the question this way.
Travis:
OK.
Yosef:
In certain states if you're a corporation and you do not have adequate
insurance that would give anyone suing the corporation to pierce the
corporate veil.
Travis:
Wow.
Yosef:
Now it's not like that in every state. Again, the specific factors of
every case are going to determine how true that actually is. But it's
definitely a factor that any corporate officer should consider –– that
not having adequate insurance can be a real problem depending on what
kind of business activity they're engaged in.
Travis:
Yeah that sounds pretty serious.
Yosef:
To be fair, it's again, any business owner should probably sit down
with a qualified insurance salesperson and explain to the insurance
agent specifically what kind of business they're engaged in and what
kind of risks they foresee, and see what they can do to mitigate those
risks.
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