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March 16, 2015



            To protect their personal assets from their companies’ liabilities, many business owners choose to form a “limited liability company” (LLC) instead of a sole proprietorship or a general partnership. Doing so offers protection for their personal assets in the event of a judgment against their businesses. It is important that business owners with LLCs select insurance coverage that meets their needs and protects against coverage gaps. The fact is that an LLC does not protect business owners against all threats. For instance, if a limited liability company assumes too much business debt, it may sometimes be possible for lawyers to hold the business owners accountable for those debts. Proper LLC coverage protects against “piercing the corporate veil.”

NOTE: Limited liability company (LLC) insurance requirements are set by the state.

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