Liability insurance

[Captorofsin1]

Hello. I carry 2 mil in liability insurance right now. The one thing I'm concerned with is if I do everything right and nothing wrong and my company it still found liable (for whatever reason). It seems like 2 mil would not be enough to cover if (God forbid) one or more casualties take place.

Does anyone know what would happen in a scenario like this?

 

[petersonra]

If you get found liable your insurance covers you to the limit of your policy. You are on your own after that. The real reason you have liability insurance is so the insurance company can pay your legal bills. Plus they are more or less a disinterested third party who does not really care much who did what or why. It is just money to them. No emotion or ego involved.

 

[Captorofsin1]

If you get found liable your insurance covers you to the limit of your policy. You are on your own after that. The real reason you have liability insurance is so the insurance company can pay your legal bills. Plus they are more or less a disinterested third party who does not really care much who did what or why. It is just money to them. No emotion or ego involved.

It just seems like if there were casualties in a mishap, that 2 million wouldn't even come close to covering it. I am incorporated so I know that I wouldn't lose any of my personal possessions.

I'm thinking at the plaintiff knew that all I had was $2 million dollars in coverage and either he could take a settlement or we could go to court and he might get something, that they would take the settlement.

If didn't do anything wrong or it was some sort of accident or honest mistake, I don't think (as long as I didn't violate code), I would be forced to shut down.

 

[kwired]

It just seems like if there were casualties in a mishap, that 2 million wouldn't even come close to covering it. I am incorporated so I know that I wouldn't lose any of my personal possessions.

I'm thinking at the plaintiff knew that all I had was $2 million dollars in coverage and either he could take a settlement or we could go to court and he might get something, that they would take the settlement.

If didn't do anything wrong or it was some sort of accident or honest mistake, I don't think (as long as I didn't violate code), I would be forced to shut down.

If you didn't do anything wrong hopefully your lawyer wins your case for you and all your insurance ends up covering is attorney fees.

If you are forced to shut down, things could be hard depending on the situation but you possibly reopen with a different corporation or LLC, though you may be starting somewhat from scratch and not just taking off from where you left the last entity.

 

[AC\DC]

. I am incorporated so I know that I wouldn't lose any of my personal possessions.

Don’t get fooled into thinking just cause you an s-corp your fine personally.
My dad was a civil engineer and owner of company in Portland and built a lot of surrounding areas around it. He tells me every day, His Huge millionaire investors and his attorney always would tell him, corp states- all that does is add an extra layer of protection. If they have the money you will own nothing so watch you back.

 

[petersonra]

You have to be very careful to follow all the rules if you want the asset protection and loc or corp can provide. If you are using corp property as if it is your own, you could have a big surprise in a law suit. You need really good advise from real lawyers who handle these kind of things routinely to protect yourself. Don't skimpy on good legal advise or get it from other electricians or the internet.

 

[kwired]

Don’t get fooled into thinking just cause you an s-corp your fine personally.
My dad was a civil engineer and owner of company in Portland and built a lot of surrounding areas around it. He tells me every day, His Huge millionaire investors and his attorney always would tell him, corp states- all that does is add an extra layer of protection. If they have the money you will own nothing so watch you back.

Particularly if you are a 100% shareholder. Or 50-50 but with your spouse.