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Making the choice to be a business owner is making the choice to put yourself and personal assets at risk.  You are at risk from litigants, creditors and other potential threats that can take your business and personal assets away.   For most people that is reason enough to avoid the hazards of business ownership.  But for those with a true entrepreneurial spirit there are many ways to protect your business and shield your personal assets from risk.

Create a Business Entity

One of the foundations of any comprehensive asset-protection plan is to create a business entity.  Creating an entity puts your business into an entity structure that provides layers of protection.  This structure establishes your business as a separate legal entity. The separation can prevent you from being personally liable for the company’s debts or legal liabilities.

Keeping your business and personal assets separate is important to establish a barrier between the two.  The improper thing to do is to commingle your finances. Commingling can make it hard for the entity structure to shield your personal assets from your business ones. 

Business owners need be sure to maintain the entity they established.   The established entity may have annual fees or can receive notices that may require action.  Always be vigilant as a businessowner of your mail, email and phone number. These points of contact are the ways your business if notified and able to communicate with, in our case agents and insurance carriers.

Quote Business Insurance

To protect your business assets, you will need business insurance.  After you choose an entity type for your business you will want to shop for quotes on different business insurance products.   The best thing for business owners to do is contact your local insurance agent.  They are going to be your best source for information, advice and access to multiple insurance carries and products.

What Insurance To Choose?

Your business and the type of work you do will determine what type of insurance you need to protect your business and will determine the amount of coverage the insurance will have.  Here is a list of insurance products and how they protect your business.

  • Commercial General Liability insurance protects business owners by covering legal expenses and damages in case of third-party claims for bodily injury, property damage, or advertising injury. It shields technology companies from financial losses due to lawsuits related to accidents or alleged negligence.
  • Workers Compensation insurance safeguards business owners by providing coverage for employees’ medical expenses and lost wages in the event of work-related injuries or illnesses. It helps ensure that employees receive proper care and compensation, reducing financial strain on the business.
  • Professional Liability insurance, also known as Errors and Omissions insurance, shields technology professionals from claims of negligence, errors, or omissions in their services or advice. It provides financial protection in case a client alleges that the professional’s work led to financial losses.
  • Property insurance protects business owners by covering the cost of repairing or replacing their physical assets, such as office space, equipment, and technology infrastructure, in the event of damage or loss due to covered perils like fire, theft, or natural disasters.
  • Employment Practices Liability Insurance (EPLI) safeguards business owners from legal claims related to employment practices, such as discrimination, harassment, wrongful termination, or wage disputes. It helps cover legal defense costs and potential settlements.
  • Umbrella insurance provides an additional layer of liability protection beyond the limits of other insurance policies. It offers business owners increased financial security by covering costs that exceed the primary policy limits, offering broader protection against various liabilities.

These insurance products play a crucial role in safeguarding business owners, ensuring financial security and peace of mind in the dynamic and evolving tech industry.

Proper Legal Agreements

As you start a successful business you will find unlimited amounts of paperwork that will need your attention.  Your personal and professional relationships, intellectual property and trade secrets all need the proper contracts and business agreements for protection.  

Proper legal agreements should be set in place by a professional business attorney.  They will help you create, review and update any of your companies’ legal documents.  Be aware that every state will have different requirements and paper work to account for.   The most important thing about paperwork or any legal agreement is if you want to protect your business make sure you enter the agreements in the name of your business and not yourself. 

Protect Your Personal Assets     

The most important protection you can have for your personal assets is personal insurance products like Homeowners, Auto and Life Insurance.  These insurance coverages will help you set a base level of protection from the perils and risks listed in each policy.  If your business is a specific size and type there may even be available coverages for business liabilities.

1. Homeowners Insurance: Your home is often one of your most valuable assets. Homeowners insurance provides protection against various threats, including fire, theft, natural disasters, and liability. It ensures that your dwelling, personal belongings, and even your liability are covered, reducing financial stress in times of crisis.

2. Auto Insurance: If you own a vehicle, auto insurance is legally mandatory in most places. It not only covers repairs or replacements in case of an accident but also provides protection in case of liability claims due to accidents you might be responsible for. This insurance is crucial in preserving your personal financial stability.

3. Life Insurance: While it’s not an asset in the traditional sense, life insurance is an essential tool for securing your family’s future. It provides a financial safety net for your loved ones in case of your untimely demise. This ensures that they can maintain their lifestyle, cover expenses, and plan for the future.

4. Umbrella Coverage: For business owners, having personal umbrella insurance can be invaluable. This additional coverage extends the liability protection provided by your primary policies. It can come to your aid in situations where your standard policies fall short, offering comprehensive protection.

Additionally, when you are a business owner, your personal assets might be closely intertwined with your professional life. This makes having robust insurance coverage even more critical. For example, if you work from home, a homeowner’s insurance policy might need to account for business equipment or liabilities related to your work.

While as insurance agents we rely on insurance policies to help businessowners protect their business it is always advised that you find a professional business attorney to set up an of your legal needs. 

This article is for general information purposes only. The information contained on this page should not be construed as specific legal, HR, financial, or insurance advice and is not a guarantee of coverage. In the event of a loss or claim, coverage determinations will be subject to the policy language, and any potential claim payment will be determined by the insurance carrier.  We shall not be liable for any damages in connection with the use of any information provided on this page. Please consult with your insurance agent/broker or insurance company to determine specific coverage needs as this information is intended to be educational in nature. provides Technology Business Insurance solutions to protect your company from potential risks and liabilities. Our policies are tailored to meet the unique needs of your technology-based business. Request a free quote today.