Liabilities

[sighlent1]

Hey, I'm a Newbie to the Bulk Vending business

How do you deal with your liabilities? Have you had any problems in the past???

Say if a kid claims to his overly protective mother that he thinks he swallowed a piece of metal, how do you protect yourself in this situation? Has a situation like this ever happened to any of you in the past?? (knock on wood)

Any feedback is highly appreciated

Thank you!

Bob

*Currently: 2 Placed Machines

[The Mage]

Really 2 ways. Insurance, and business structure, as in an LLC (Limited Liability company,) or s Corporation.

I know umbrella liability policies can be cheap, but that is with a $100,000 deductible.

What is important here is the size of your business, and net worth. Do you have anything to loose?

Too many people think of a lawsuit as a quick way to cash, but it often is the lawyers who really make the money here, eating up most of the payoff in fees. As such, many will not touch a case if there is nothing, or too little to get, and will even talk a client out of it because it isn't with their time.

Some corporations have had their "corporate veil" lifted in court before, because they didn't follow all the rules. But last I knew, an LLC had never been tested in this way. This worries some people, because there is no evidence it can stand up in court, but from my perspective it means nobody has found it worth it to try, so the chances are small that you will be the first.

Now I am not a lawyer, or an accountant, so don't take legal or financial advice from me.

[sighlent1]

Excellent, Thank you Mage!

I highly appreciate your input

Thanks

Bob

[havending]

Buy insurance to protect your self.

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