Owning a business is a serious legal risk. Business related lawsuits are becoming more common in today’s overactive legal environment where attorneys are better equipped to find insurance policy exclusions and include personal assets in legal judgments. Most businesses in the United States are structured as a partnership or sole proprietorship, a form or ownership that puts your business and personal assets at immediate risk. Unfortunately, even if your company is structured as a corporation or limited liability company (LLC) you may still be named individually in a lawsuit. Accidents are inevitable; one small accident can result in unplanned physical or psychological injuries.
In most cases, legal judgments exceed the limits of these policies. Also, many common, frivolous claims may qualify as exclusions in your traditional business insurance policies.