As a business owner, you may understand the risky business of generating leads, nurturing successful business relationships, and increasing sales. But it’s also important to understand how taking certain precautions will protect your personal finances from business risks that may threaten even the most lawful business professionals.
From lawsuits and claims to accidents and other unforeseen events, there are countless business liabilities that may jeopardize your long-term financial health. At Doeren Mayhew Insurance Group, our experienced insurance brokers have the expertise to offer customized insurance solutions that will help you minimize business risks and protect your personal assets.
Whether you’ve been in business for a long time or you just recently became an independent contractor, our tips below will help you safeguard your personal wealth from legal issues or debt that may threaten your business down the road.
Choose the Right Legal Entity
Choose the right legal entity for your business by registering as a limited liability corporation, or LLC, which makes it difficult for any potential lawsuit to affect your personal finances. Setting up an LLC legally protects your personal wealth in the event that any number of liability claims arise.
Secure Proper Business Insurance
Protect your financial assets against a wide range of claims with proper business insurance coverage. Talk to your trusted insurance broker about risk management solutions that may protect your assets in cases of workers’ compensation, employment practices liability, and property insurance claims.
Separate Work and Personal Finances
Strengthen the level of protection of your personal wealth by creating separate accounts and financial documents for your business. From bank accounts to tax information, it’s important to establish and maintain a discrete presence and papertrail for your business that’s easily distinguished from your personal record.
Set Up a Contingency Plan
Downturns can negatively affect your long-term financial stability, but they can also threaten your personal wealth. Establishing an effective contingency plan will go a long way in minimizing risk. Be sure to build alternative revenue streams, maintain good relationships with past employers, and talk to your partner or family members about how you might replenish financial losses in case something goes wrong.
At Doeren Mayhew Insurance Group, we have the experience and expertise to tailor your business insurance solutions to your unique needs. Contact us to learn more about how to protect your personal wealth from business liabilities, or to schedule a consultation today.