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Being a business owner means enormous opportunity, but it also means putting yourself at risk.  You are at risk from litigants, creditors and other potential threats that can take your assets and your time.   For most people that is reason enough to avoid the hazards of business ownership.  But for those with a true entrepreneurial spirit there are ways to help protect your business and shield your personal assets from risk.

Create a Business Entity

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

Business owners need be sure to maintain the entity they established.   The entity may have annual fees or receive notices that may require action.  Always be vigilant as a businessowner by checking your mail, email and phone calls. These points of contact are the ways your business is notified of important information.

Purchase Business Insurance

One of the best ways to protect your business assets is by purchasing insurance.  After you choose an entity type for your business you will want to shop for quotes on different business insurance products.   a local insurance agent can obtain quotes and make suggestions regarding coverage.  They are going to be your best source for information, advice and access to multiple insurance carries and products.

Your business, risk tolerance, and the type of work you do will determine what type and amount of insurance you need to help protect your business and .  Below is a list of common insurance products and how they help protect your business.

  • Commercial General Liability insurance helps protect business owners by covering legal expenses and damages in case of third-party claims for bodily injury, property damage, or advertising injury.
  • Workers Compensation insurance provides 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.  This is usually required by law.
  • 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 or wrongful termination,. It helps cover legal defense costs and potential settlements.
  • Umbrella insurance provides an additional layer of liability protection beyond the limits your general liability policy. It offers business owners increased financial security by covering costs that exceed the primary policy limits and can help meet contract requirements.

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 need your attention.  Your professional relationships, intellectual property, and trade secrets all benefit from having the proper contracts.

Proper legal agreements should be set in place by a professional business attorney.  They will help you create, review and update any of your company’s legal documents.  Be aware that every state will have different requirements and paper work to account for.  Working with a qualified attorney can help protect your company in the long run 

Protect Your Personal Assets    

One of the most important ways to protect your personal assets is by securing 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. 

1. Homeowners Insurance: Your home is often one of your most valuable assets. Homeowners insurance provides protection against various threats, such as fire, theft, natural disasters, and liability. It helps ensure that your dwelling, personal belongings, and 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 can cover repairs or replacements in case of an accident and provides protection for liability claims you might be responsible for. This insurance is crucial in preserving your personal financial stability.

3. Life Insurance: 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 passing. Life insurance helps ensure that they can maintain their lifestyle, cover expenses, and plan for the future.

4. Umbrella Coverage: for individuals, umbrella coverage can provide additional protection on top of your homeowners and auto policies.

Additionally, when you are a business owner, your personal life 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 not cover business equipment or liabilities related to your work.

While insurance policies to help businessowners protect their business it is always advised that you find a professional business attorney to address 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 are not 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 and general 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.