All Forum Posts by: Tim Norris

This is a re-post, but if you haven't seen it, I hope it helps:

As it relates to asset protection strategies, think of the work you do with a legal adviser who, upon considering factors such as net worth, estate planning issues and taxation will offer advice regarding entity and ownership issues. I believe this is your "castle walls and moat" around you/yours. Think of the liability insurance as the "archer in the watchtower". The entities you create (LLCs, trusts, etc...), work symbiotically with the insurance coverage. How much is enough? Who really knows, but keep in mind that your "personal exposures", such as your vehicles, home, etc...(assuming you haven't exorcised ownership via trust, etc...), are/should be segregated from your business exposures.

All that stated, I carry $500k on our personal vehicles and personal liability (homeowner), and $3MM in a "personal" umbrella. Frankly, the umbrella, at $230/year is worth it at that limit. We (partner) carry $1MM over the properties we own via LLC. No "business" umbrella. Are these limits sufficient? Again, who knows, but they are in my mind, at least. Statistically they are, as most liability claims are under these amounts.

Really, your asset protection strategy should start with a versed attorney, include your CPA, and possibly your financial advisor. Figure out how to own/control what you have, then make a call, in your opinion, how much insurance is enough. Hope this helps!

Tim

As it relates to asset protection strategies, think of the work you do with a legal adviser who, upon considering factors such as net worth, estate planning issues and taxation will offer advice regarding entity and ownership issues. I believe this is your "castle walls and moat" around you/yours. Think of the liability insurance as the "archer in the watchtower". The entities you create (LLCs, trusts, etc...), work symbiotically with the insurance coverage. How much is enough? Who really knows, but keep in mind that your "personal exposures", such as your vehicles, home, etc...(assuming you haven't exorcised ownership via trust, etc...), are/should be segregated from your business exposures.

All that stated, I carry $500k on our personal vehicles and personal liability (homeowner), and $3MM in a "personal" umbrella. Frankly, the umbrella, at $230/year is worth it at that limit. We (partner) carry $1MM over the properties we own via LLC. No "business" umbrella. Are these limits sufficient? Again, who knows, but they are in my mind, at least. Statistically they are, as most liability claims are under these amounts.

Really, your asset protection strategy should start with a versed attorney, include your CPA, and possibly your financial advisor. Figure out how to own/control what you have, then make a call, in your opinion, how much insurance is enough. Hope this helps!

Tim

Though not an attorney, the proper way to do it is to name the LLC as the first-named insured. It may not ever bite you (to do it the way Allstate requires), but you never know. Allstate and many of the "big box" insurers have such protocols that don't allow this (for some reason, who knows???). That stated, there are many other options of carriers and Programs that correctly allow the LLC to be named appropriately...

Not really, just not in the office---but 25 others who can help are! ; )

Hi Ann,

In about 15 minutes...just contact our office.

Happy New Year, by the way!

As for the insurance, I wrote a piece a few years ago here:

http://www.nreinsurance.com/wp-content/themes/migration-www.nreinsurance.com/misc/Insurance-Issues-for-the-Sub2-Deal.pdf

My opinion only, but has been successful for us for years. I think it's saved on BP as an article, too...

Happy New Year!

Shouldn't be, but look around at a few carriers...

It shouldn't affect them adversely in any way. You really have a "commercial" exposure that merits you securing evidence of liability insurance at minimum from your new tenants. You (or your Agent, really) may run into a few roadblocks on coverage for the building as an "office", but shouldn't be insurmountable...Happy New Year!

No, @Dion DePaoli, though we have considered that as an option to at least some of our model. Long story that will get easily too weedy in this context, but the Captive insurance concept is strong, yet requires certain "minimum" costs/premiums to make it viable...

@Bill Gulley No worries at all, Bill...it was my way of softening it! : )