Asset Protection for Professionals and Business Owners in Maryland and Washington, D.C.
Asset protection involves making prudent decisions today to protect yourself, your business, and your hard-earned assets from losses due to lawsuits, creditors or bankruptcies. This type of proactive legal planning is especially prudent for professionals and business owners, whose personal assets could be at risk due to the nature of their employment without expert legal techniques.
Asset protection is something anyone can benefit from in a time when the number of divorces, lawsuits and bankruptcies is staggering and continuing to increase. While no one believes lightning will strike them, wealth created through a lifetime of work, savings and investments can be lost overnight if these forms of man-made lightning do strike. To protect your assets from such disaster, we take advantage of proper risk management strategies. These strategies include exempting your assets from the claims of creditors, limiting your liability through legal entities, and transferring your risk through insurance.
Limiting Liability for Professionals & Business Owners
Many entrepreneurs operate their businesses as sole proprietors, or without the benefit of corporate status, rather than through a legal entity (such as a Corporation or a Limited Liability Company). Whether the business is home-based or in the Fortune 500, these business owners are attracted by the informality of sole proprietorship. They also do not want to incur legal fees to create and maintain a legal entity. However, conducting business through a legal entity offers substantial risk management benefits.
These benefits will protect you when lawsuits are brought against a sole proprietorship because these are really lawsuits against the owner’s personal assets. When lawsuits target a properly created and maintained legal entity the burden is taken away from your personal assets and an extra layer of protection is added. Profit Law Firm, LLC recognizes the reality of lawsuits against sole proprietors and can effectively manage the unnecessary risk.
Transferring Risk with Insurance
When was the last time you reviewed the details of your liability insurance program with your insurance professionals? Are your policies current? Are the coverage limits adequate and are the deductibles reasonable? Have you scrutinized the policies for loopholes? Remember: the fundamental philosophy of any insurance coverage is to pay a premium you can afford to transfer a risk you cannot afford. Take time to understand both the risks you have retained and the risks you have transferred.