Published on May 1st, 2017 | by Kandace H0
Reduce the Risk: How to Insure Your Business Assets to Prevent Heavy Losses
Owning a business means handling a lot of equipment, income, employees and expenses. If you own a building and property, those assets must also be insured. These four steps will help you to insure your business assets and prevent heavy losses in the event of a lawsuit that is filed due to someone’s injury, illness or a problem of workmanship.
Putting Assets into a Trust
If you own your business as a sole proprietorship, consider placing the business assets into a trust. You will need to work with an attorney to accomplish this process. Placement of the assets into a trust is a way of insuring your own personal finances against any lawsuits or penalties that could be incurred by your business. The trust could be sued, but it would not affect your own money.
Insuring a Body Piercing Business
Running a body piercing business means that a personal injury or an infection could happen to one of your customers. Making sure to have insurance for your body piercing business is a necessity to protect you against bodily injury claims. Be sure to have insurance that covers your business equipment as well as the employees who work for you. You may need to have both liability and accident coverage, in case of an error or an accident.
Obtaining Business Insurance
Obtaining business insurance is important to your livelihood. Asset insurance protects your building if you own it. This insurance also covers the equipment used in your business, such as autoclaves and hollow point needles. You can always find more info out about these sort of insurance details on a quick Google search. Liability coverage protects you and your employees from a person’s claim of shoddy work or an error in workmanship. Liability coverage also protects your business in case someone slips and falls or trips over a loose step or sidewalk.
Incorporating Your Business
You can also insure your business by incorporating it. This process also requires a lawyer, but the small fee is worth the protection that incorporation provides to your assets. As an incorporated business, your home, savings and other property are separated from your business. A lawsuit against your business would not affect your personal finances.
Every business assumes some risk when it opens its doors to customers. When your business provides a service related to the body, this ups your risk and increases your need for insurance against losses. Taking these four steps can help you to separate your own income, property and financial stability from the finances of your business so that a lawsuit does not wipe you out.