cramlow82 Posted October 17, 2013 Share Posted October 17, 2013 So I've read a lot of information on here... and I went to my insurance provider, and I still don't have an exact answer... What exactly what liability insurance cover? (protection from injury from machine? Protection from choking? Protection from claims your product made them sick?) Do you have it in writing what it covers? or did they just verbally say what should cover? BTW...( I have bulk candy/gumball dispensers) My insurance guy is wondering if I really need it for these ... and says an LLC might have the coverage I need. Does this sound right? Does an LLC actually provide coverage in case of being sued? or just protect your personal assets? I'm looking for some solid information so that I know what I should get to protect myself. Thanks everyone! Link to comment Share on other sites More sharing options...
AZVendor Posted October 17, 2013 Share Posted October 17, 2013 If that was the answer you got from your insurance agent, I would be looking for another insurance agent who understands business liability insurance. You need a Business Liability policy that covers personal injury, personal and advertising injury, product and completed operations aggregate, damage to premises, forgery and alteration and employment practices and fiduciary liability. No corporate veil will provide insurance features. The LLC, S-corp and C-corp will only protect your personal assets from any lawsuit filed against the business entity. If you are a Sole Proprietor you will not have that kind of protection. In all business entities you will need a business liability policy with good limits of more than $1M. Link to comment Share on other sites More sharing options...
cramlow82 Posted October 17, 2013 Author Share Posted October 17, 2013 Maybe I heard him wrong... I hate to make him sound bad. But either way, I'm going to talk to a tax guy... and find out if I should get a LLC or S-Corp. What do you guys do? I see mostly LLC... but S-Corps seems cheaper to start and renew and still covers personal assets right? Link to comment Share on other sites More sharing options...
AZVendor Posted October 17, 2013 Share Posted October 17, 2013 One of the things people like about LLC's is that there are no annual meeting requirements to follow and no annual reports to file, yet you get most of the protections offered by a C-corp. Of course this could be different in your state and you would have to find out what all the reporting requirements are for your state regarding the various business entities. If your tax guy is a CPA he should be able to guide you properly. Link to comment Share on other sites More sharing options...
caserri Posted October 17, 2013 Share Posted October 17, 2013 Here is some good reading... http://www.vendiscuss.net/index.php?/topic/3742-LLC-Info Link to comment Share on other sites More sharing options...
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