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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