For individuals with successful small businesses, it is vital to protect the business assets from any liability that may arise in his or her personal life. A car accident, for example, could wreak havoc on a small business that is not properly protected. A recent article discusses several steps a business owner can take in order to protect his or her business assets from personal liability.
The first step is to create a spreadsheet of all the assets that your company owns. The spreadsheet should list the name of each asset, the fair market value of the asset, and any debt that is secured against the asset. These amounts can be approximated as nearly as possible. Through this list, the business owner can determine and evaluate which assets face exposure.
One way to protect these assets is through umbrella insurance coverage. Typically, umbrella insurance costs between $300 and $500 for a business worth between $1 and $2 million. This type of insurance will protect business assets from many liabilities created in the business owner’s personal life. Policy holders should be aware, however, that most umbrella insurance policies will not protect against liability created through criminal, negligent, reckless, or fraudulent actions.
