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Updated about 5 years ago on . Most recent reply
What Insurance Will Cover if/when "Corporate Veil" is Pierced?
Hi All,
Context - I live in NY and invest in PA. Have a multifamily(2 units) in a LLC that was bought by the LLC directly. We are three partners and follow all the steps to protect the veil and also keep anonymity (one partner is a lawyer). Even then if corporate veil was ever pierced, is there an insurance that can cover my personal assets? perhaps commercial umbrella?
Note: have underlying liability of $1M already with the LLC as insured.
Most Popular Reply
#1 Insurance Contributor
- Insurance Agent
- Norwalk, CT
Vidit,
Find out from your Atty. partner, how the judgement would come if the veil is pierced. I suspect that each LLC Member would be facing the judgement for all or part of the damages. If that is the case, contact your agent to find out if your personal liability on your homeowners would respond. If so, purchase a personal umbrella policy to increase the amount of Liability coverage.
The greater the amount available to pay the loss by the LLC should lessen the likelihood that they would seek to pierce the veil. Adding a commercial Umbrella policy would increase that limit.