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Do I Need Liability Insurance?
If you have this question of liability insurance which says “do I need liability insurance”? the capital answer is YES, you do need liability insurance. I have written about liability insurance in car insurance, so you can use the insight on a general understanding. Any business that deals high-risk and its related activities, such as construction, transportation, should have appropriate levels of insurance put in place. else, you run into a serious risk of bankruptcy or worse, exposure of the business owners personally if there’s a judgment against your company in the course of your business harming other people.
In additionally, liability insurance may also be a requirement of any job that you work on. Do make sure you speak with a commercial insurance professional to ensure you have the levels and different kinds of business insurance policy that you will need to get your business going against any sad event.
How to Reduce Risk Exposure in Liability Insurance
As to other legal factors on your liability insurance, you’ll need to take the steps below to reduce your risk exposure.
- Forming a separate business entity.
- Complying with any health or safety regulations that are relevant to your business establishment.
- Having a written contract for all of your jobs.
- Do not overlook rules and regulations concerning sanitation and disposing of hazardous materials (good waste management).
For the healthy operation of the business itself, you would want a clear understanding with your business partner (if any) about capital contributions, decision-making and why each of you might leave the business in a later future. All these are thing you must address in a partnership agreement which must be sealed and sign by both parties. A local attorney (your company lawyer) who understands the construction industry for instance should be able to help you with these items. He is the one that will write the agreement while you both sign and seal it up with the attorney.
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