For many business owners, their companies began with humble and homegrown roots before they found success and wealth. Many of our largest global companies started out in dorm rooms, home garages, or at the kitchen table as people spent their own money developing their product or brand.  As businesses grow and expand out of the home and into a self-sustaining entity, it is important to make sure personal assets and finances are protected from possible business liabilities. Without proper protection, homes, finances, and other personal property could be in jeopardy if faced with business creditors or a company lawsuit. Today's Aegis blog explains several important steps to take in order to protect personal assets and property from potential business liabilities.

Choose The Right Business Entity

When a small business begins, it's important to create the correct business entity for the specific needs of the company. A business entity, such as a Limited Liability Company or S Corporation, establishes the company for legal and tax purposes and helps create a separation that can protect the owner from potential business liabilities in the future. Through these business entities, assets and other personal property can be shielded through possible judgments or liability claims.

Clearly Separate Personal and Business Finances

Managing business finances can be a complex and time-consuming process, and it can be easy to make a mistake that has a ripple effect on both the company and business owner's personal finances. To help oversee company finances and ensure a steady cash flow, it is wise to invest in bookkeeping software or hire an accountant to manage financial records, payroll, taxes, and other financial responsibilities. This can also help protect personal finances from getting mixed in with company assets or financial records.

Have The Right Kind of Commercial Insurance

Finally, business owners can better protect their personal assets from company liabilities through reliable, comprehensive Commercial Insurance coverage. When companies have Commercial Insurance policies in place such as Workers Compensation, Commercial Property, and General Liability, they can have the financial resources to cover hefty judgments, court costs, or other expenses rather than a court seizing personal assets to settle those debts. Professional Liability Insurance and Business Interruption coverage can also provide financial support and peace of mind for companies facing liability claims.

Because of the precarious nature of business and the many possible liability risks that exist, business owners need all the peace of mind and financial protection they can get while running their company. Commercial Insurance coverage from Aegis Insurance & Financial Services can help! Our team of friendly, knowledgeable agents can create a comprehensive insurance portfolio that meets the specific coverage and financial needs of the company and industry. Contact Aegis at 713-850-7622 for more information or to request a free quote!