Want to start your own business?

I think that is great … but it comes with some potential troubles and not all of those are making payroll.

If an employee or customer gets hurt because of your business, it can cost you.  If you have not made arrangements, it could cost you your savings, your house and even the business you worked so hard to start.

If you are selling handmade jewelry out of your apartment and someone falls over your bead bins, who is paying for those medical bills? What happens if you have a dog walking service and Fido bites a jogger?

I am surprised at the people who just start selling an item or service with little thought to protecting themselves. Let me focus on 2 major areas: the type of business structure and insurance.

If you have done nothing about formalizing your business you are a sole-proprietor. Under this form of business, you are the business. That means if someone sues the business then they are suing you and going after everything you own. Yes, it could mean losing your house. Under a more formal business structure, someone can sue the business but not you as an individual. So your house is safe. That is why an injury at Walmart would be paid by the company and not the heirs of Sam Walton.

The other thing to look at is what insurance you have. Some policies will exclude coverage if you are operating a business out of your house and others might not cover you if you are driving for profit.

In my business of helping injured people, I have seen all these problems. Most could have been avoided with a little planning by the business owner.

Hurt at a business? You can talk to us at  Eiland and Ritchie  for free. There is no charge unless we collect for you. We want to help you get back on your feet.

Allen Ritchie

Alabama personal injury lawyer

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