As many as three quarters of companies in the United States are created as a partnership or sole proprietorship. This business type can place your business and your personal liability at risk, for most small businesses. Carrying adequate and proper liability coverage will protect your business as well as your personal finances from ruin.
Sometimes business owners believe that they are completely safe from personal liability, which they believe is unnecessary. However, this is not the case.
Here are few reasons you could be deemed personally liable:
Commercial liability insurance helps to protect your business against lawsuits for property damage or personal injury. This type of insurance covers the damages from the lawsuits and legal costs mentioned above. Liability insurance can come in many different forms according to the type of business you run. Let us help you figure out the best coverage for your company, call us today at 512-989-6006 for a Round Rock business insurance quote.
- You sign a personal guarantee for a loan.
- You act recklessly or in an unlawful manner.
- You do not run your business as a separate and distinct entity.
- You harm someone directly.