Why a Corporate Liability Shield Is Not a Replacement for Liability Insurance

| posted in Blog, Newsletter

Business owners who form a corporation or a limited liability company (LLC) may question the need for the business to carry insurance given the corporate liability shield. A major benefit of these forms of business organization is that they shield the owners’ personal assets. Because of this, they may believe insurance is unnecessary but it still leaves the owners vulnerable for potential losses. A corporation is a legal entity separate from its owners. It acts as an artificial legal person. It can do the things that individuals may do, such as: Enter into contracts Incur debts Earn income Make investments…
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Settling Claims on Your Own Risks Voiding Your Policy

| posted in Blog

While your insurer has the responsibility to investigate and pay claims made on your firm’s commercial general liability policy, you also have responsibilities to ensure your claim is paid. Two of the key parts of your responsibilities are: • Notifying your insurer of the claim as soon as possible. • Not taking the claim into your own hands before notifying the insurer. Commercial general liability (CGL) coverage is usually written on an occurrence basis, meaning that the policy will cover events that occur during the period the policy is in force. In other words, if an occurrence hits towards the…
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Why Your Business Needs an Umbrella Liability Policy

| posted in Blog

If you own a business or commercial property, consider how easily you could absorb events like these: • You own an apartment building with a porch that does not have railings. One of your tenants falls from it, and recovery from her injuries requires months of physical rehabilitation. A court awards her $3 million. • The poorly maintained brakes on an asphalt truck fail. The truck strikes the back of the car in front of it, causing a woman riding in the car to suffer serious hand injuries. The truck’s owner settles with her for $1.5 million. • A man…
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