How does business liability insurance work for new companies...?

Business Law Topics
1

So, I’m trying to figure out business liability insurance for a new company. There are three types, right? General, product, and professional liability. Just wondering, how do other new companies handle this? Especially with setting up payroll or figuring out the right coverage? Appreciate any tips!

2

Yeah, for payroll, you can go with a service like QuickBooks. Or if you’re bigger, maybe hire a payroll company to handle it. Easier that way.

3

Jaden said:
Yeah, for payroll, you can go with a service like QuickBooks. Or if you’re bigger, maybe hire a payroll company to handle it. Easier that way.

Makes sense. QuickBooks sounds manageable! But how does that tie into the insurance setup?

4

@Ali
Mainly for tax purposes and to make sure your payroll info is ready when the insurance company needs it. Keeps everything official.

5

Anyone know if forming an LLC can really protect your personal assets? My CPA suggested it, but still feeling unsure.

6

@Landry
Interesting… so security measures are huge for liability .

7

@Lin
Thanks, makes more sense now. Just trying to keep things simple but covered .

8

If someone gets hurt on your property, you’ll definitely want general liability. It’s the one that covers most of those ‘on-site’ issues.

9

Linden said:
If someone gets hurt on your property, you’ll definitely want general liability. It’s the one that covers most of those ‘on-site’ issues.

Exactly, general liability is super common for this. Professional liability covers specific services and advice if your biz gives that.

10

@Ziv
Good point. So if it’s product issues, that’s product liability then?

11

FYI, you can set up an LLC online through places like Legalzoom. Handy if you want to keep it simple and online .

12

Isle said:
FYI, you can set up an LLC online through places like Legalzoom. Handy if you want to keep it simple and online!

Is it good for big companies too? Or just small businesses?

13

@Zion
Mainly small businesses. Big companies usually hire attorneys to get it right.

14

Here’s a question: if a company officer is murdered on-site, could their family sue the insurance company? :grimacing:

15

Drew said:
Here’s a question: if a company officer is murdered on-site, could their family sue the insurance company? :grimacing:

Actually, no. They’d sue the company if it lacked security, not the insurance co.