What Your Company Needs to Know About Liability

If you are sued as a sole proprietor, you will be sued personally. Your retirement savings, your house, and other assets could be at risk. Once your business is incorporated, it exists as a separate business entity. This means that the corporation is now responsible for all of its liabilities and debts. This is called the corporate shield in the industry. It separates your personal assets from your business assets.

For instance, if you are just starting out and get sued, your personal assets may be vulnerable for up to 22 years. This could be long after you are a huge success. It is very important to think about protecting the assets you have to today as well as whatever you may have tomorrow. It is easy to form an LLC. This is great for smaller businesses who want to protect their personal assets with minimal administrative requirements and red tape.

Personal Liability

The first crucial step to minimizing personal liability is forming or incorporating an LLC. This measure does not unconditionally protect you from personal liability. Here are several circumstances where you can still be held personally reliable:

* You mix your business and personal finances and do not operate your business as a separate entity.

* You operate your business illegally or commit a crime

* Your actions result in an injury.

* You personally guarantee a loan for your business.

Business Liability Insurance

Your small business can be protected from personal injury or pretty damages in case there is a lawsuit by having business liability insurance. Liability insurance comes in different forms. It depends on your business needs. You should discuss your specific business risks with a broker or an insurance agent who is familiar with your industry. Here are three main types of business liability insurance:

* General liability insurance – This protects your business from claims of negligence, property damages, injury claims, and advertising claims. General liability insurance may be the only type of insurance you may need depending on your business.

* Product liability insurance – This insurance protects you against financial loss as of a defective product that could cause harm. Companies that wholesale, manufacture, distribute, and retail a products may need this kind of insurance.

* Professional liability insurance – This kind of insurance protects business owners who supply services against negligence, errors, malpractice, and omissions. You may be legally required to have coverage in some professions. This includes a practicing doctor in specific states. Independent consultants are required to have their own coverage in some businesses.

Business Classification Can Affect Your Premium

Insurers have classifications for each kind of business. The classification in part determines how much your insurance coverage will cost. Each business will incur its own degree of risk. Insurance companies factor in these risks when the premium is calculated. Make sure your company is accurately classified to stop unnecessary expense. The amount of sales you make and the size of your payroll can affect your premiums as well.

The first essential step is incorporating or forming an LLC. This liability coverage if it is necessary. It is important to take your business and liability concerns seriously no matter how small your business or what industry you are in. You can save yourself from financial hardship and headaches down the line if you take a few steps and stay ahead.

Travel Destinations On A Budget: 5 Ways to Save

When summer hits, many kids are freed from school. Many workers are excited to get a week or two off of work. The summer vacation is just about as American as apple pie. Some people are concerned that the Great Recession made traveling outside one’s hometown an impossibility for the vast majority of Americans, but there are still several ways to make a vacation more affordable. Here are five.

Visit a Budget-friendly Destination

If you choose to go to one of the Disney theme parks that are situated around the globe, there is a good chance that it will cost an arm and a leg. In addition to the expense of admission, there is also the cost of lodging and food, and these will likely come at a premium. Why not go to a destination that doesn’t cost quite as much. Places like Chickasaw Country or one of the national parks in the Midwest can be great options that are more affordable for families who want a nice vacation.

Go During the Off-season

The week around the Fourth of July will always be one of the busiest and most expensive times of the year to go on vacation. Going the first week after school is out or the last week before school starts back can be great times to save a bit of money. Those who have no ties to the school calendar can also benefit from going at other times of the year. Low season in the Caribbean is October and November. Those going to Europe can frequently save during the spring. Many American beaches are cheaper in the spring and fall. Those who can visit at these times will do quite well.

Use Points

Getting to many destinations quickly can require a plane ticket. Otherwise, a trip to Florida could take about a week in the car for someone from the West Coast. Airfare has gone up considerably over the past few years, and many airlines are now charging for checked luggage. One way to avoid this cost is through the use of a point-paying credit card that gives you frequent flyer miles. These miles can accumulate to the level of a free ticket. Of course, it’s very important to avoid paying interest on these cards because this will lead to more debt than the cost of the ticket.

Stay Close to Home

There are interesting places to see and activities to do in just about every part of the country. Whether it involves a few days visiting historical museums or some time at a local lake, many Americans can have a blast without paying hundreds in transportation costs. Also, camping at one of these sites can be a great way to save on lodging.

Shop around

It’s never been easier to find a place to stay while on vacation. Travel websites like Orbitz and Expedia have made it very convenient to price airfare and lodging. Those who are browsing for the perfect lodgings can also see pictures and customer reviews from previous clients. This can help you save money while also avoiding the Roach Motel.

Going on vacation is great fun. Few people hate travel, and many Americans would take off if they did’nt think it was so expensive. While there is quite a bit of expense involved in taking a trip, those who are budget-conscious can still save money by following these tips.