In the past, retirement traditionally meant that you were done working. You spent your time relaxing on the beach, playing golf or spending time with your kids and grandchildren. However, retirement nowadays could also mean starting a business, creating a charity or otherwise pursuing a passion now that you have time to do. How can business insurance keep you from losing what you worked so hard to achieve?
Your Liable Even if When Others Take Care of Daily Operations
You can be a business owner without actually putting in any time serving customers or fulfilling orders. To be a business owner, all you need to do is have a majority financial interest in the company. However, whether or not you run the daily operations of your business, you could still be liable for anything that happens.
Therefore, an insurance policy could protect you if a customer gets hurt because of poor building maintenance or another company sues because of patent or trademark infringement. If a judgment is rendered against your business, the policy will pay most or all of the judgment for you.
What Could You Lose if Something Goes Wrong?
There is a lot that you could potentially have taken from you if a disaster befalls your business. If you have to file for Chapter 7 bankruptcy, you could lose your company as well as your home or other valuable assets. While your retirement accounts may be safe, creditors could gain access to your bank accounts. If you have to make required withdrawals from an account, it could be seized as soon as it hits your bank account.
However, with a business insurance policy, you don’t need to worry about some or all of your assets liquidated. Instead of losing the money in your 401k or IRA, you know that it will be there to take care of you even if your company goes under. If you planned on passing assets to your children or grandchildren, you could sleep easier knowing that they are still there to pass on.
Insurance Can Be Easier Than Incorporating
Insurance is only one option that you have to protect yourself financially against liability that could arise while running a company. Another option is creating a corporation or LLC. However, if you are running the company on your own, it may be easy for a judge to pierce your corporate veil, which essentially means that you are still personally liable for damages. Getting an insurance policy is cheaper and easier because you don’t have to pay corporate taxes or file paperwork with the insurance company as you would with the government.
A business insurance policy ensures that you have the financial resources to do what you love without risking everything you have already worked for. This could keep you from having to live with your kids or take other steps to alter your lifestyle if anything were to happen through the course of running a business in retirement or at any other time. If you’re not quite sure what your requirements are or need advice, contact Herndon Carr & Co Insurance for expert assistance.
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