Title Trouble: Does the name on your title of ownership agree with the name on your insurance policy?
If there’s one thing you can always find in the insurance industry, it’s . . . lawyers. Didn’t expect to see that, did you? But it’s true – lawyers can sniff out loopholes like a beagle can sniff out a dead deer to roll in. Those loopholes – the kind that allow an insurance company to deny a claim – are the kind of thing you need to watch out for in your insurance coverage.
Here’s an example; you own a car, but insure it through your business.
The whole point of having an LLC, or corporation, is to create a separation between personal assets and business assets. This helps make sure that your personal and family assets are safe in the event of a lawsuit against your business.
Have an accident in the family car, on work time, however, and you may open up a loophole that will cause you no end of trouble, on both the home AND business fronts. So how to avoid that situation? There are ways to close the loopholes, these include the creation of leasing agreements, title changes, and other options, such as insuring the the car as an individual. Make sure that the business has an insurance policy covering you and your employees who drive personal vehicles on company business.
Of course, if you’ve got a good insurance agent working for you, they’ll help you sniff out these inconsistencies before they become problems!
