[thelist] LLC and Insurance (Was: Contract Opinion)

Philip Warbasse (info) info at warbassedesign.com
Tue Mar 11 19:22:01 CST 2003


Hi Gina,


A LLC is a is one method for incorporating your business.  It protects your
personal assets (not your company) in the event you become insolvent or
bankrupt.  That has nothing to do with exposures such as liability, errors
and omissions, property coverage etc.

As far as liability and protecting assets,  these are tips I have given
before.

1.) Protect yourself (but be reasonable).
2.) Whether you're working out of your house or out of commercial space, if
you have clients over, you will want liability insurance in place to cover
their medical expenses should they trip and fall or something like that.
Note: Some homeowner's policies would cover here too.
3.) If you are working on someone else's premises as a contractor.  You can
carry protection for yourself in case you do something like break a computer
or delete a bunch of your clients info on accident.
4.) The last thing you should consider is "errors and omissions" insurance.
It's not as important for a web designer as it is for a 'lawyer' say.  But,
this insurance protects professionals in all walks of life against screwing
up.  There is even error and omissions insurance for insurance agents.  :)

You can form a pretty good legal document online these days.  LLC is nothing
new
and if you need a non-customized form try http://www.legalzoom.com/.  Also,
feel free
to have an independent insurance agent quote you professional errors and
omissions
coverages from several different companies.  That way you can comparison
shop.

Have a nice evening.

Philip Warbasse
www.warbassedesign.com



----- Original Message -----
From: "Gina Anderson" <gina at sitediva.com>
To: "evolt.org mailing list devoted to the web" <thelist at lists.evolt.org>
Sent: Tuesday, March 11, 2003 3:56 PM
Subject: [thelist] LLC and Insurance (Was: Contract Opinion)


> Hello all,
>
> First, thank you to those that responded to my question on the contract
> clause. I appreciate your input. Which comes to my related questions....I
> would like some input from those of you who have or know about
professional
> liability and errors and omissions insurance which Philip mentioned. I'd
> also like anyone who is an LLC or knows biz structures to chime in on
this.
>
> My questions are:
>
> 1.) If I'm an LLC, do I still need liability insurance? It seems being an
> LLC protects you from that, buuuttt---if something awful were to happen, I
> doubt my piddly business assets would appease them. The same goes for the
> insurance, if I have that, do I really need to mess with being an LLC?
>
> 2.) Those sites that blast "Form an LLC Online!"--are they good to use? I
> mean, is it worth paying the extra money for them to send the forms in to
> your state--versus me filling them out on my own? Any other advantage of
> using them, and does anyone have any recommendations for online companies
> that do this? Is the "basic package" good enough?
>
> 3.) Recommendations on where to get professional liability and errors and
> omissions insurance? Before I call my home insurance agent, I want to have
> some price comparisons.
>
> Any other input relating to this that I should know about would be great.
> Thanks to anyone willing to help.
>
> Thanks,
> Gina
>
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