In this episode of Coffee with Carl, attorney Carl Zoellner talks about the limitations of business insurance and why insurance alone isn’t enough to protect your assets.
You may have heard from your CPA that business entities are not necessary if you just buy more insurance. Insurance is great, and an important piece of your overall asset protection strategy. However, insurance alone is not enough to protect your assets.
Consider this: if you were going to rob a home, would you pick a house with an alarm system and vicious guard dogs? Or, would you pick the house with no alarm system, no dogs, and an unlocked front door? When you have a lot of assets that aren’t held inside business entities, your assets are as vulnerable to attorneys as an unguarded house.
When attorneys consider potential plaintiffs, they look for the available assets they can easily discover. They do this to know whether the case is worth their time and effort. If you have assets in your personal name PLUS an insurance policy, the plaintiff is less likely to settle for the insurance money because they know you’ve got more.
That’s where business entities become so crucial. They can only take what they can find — and business entities are essential to maintaining privacy around your assets.
Watch now as Carl covers the importance of business entities for asset protection and why insurance alone is not enough.
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