Just opened a new business: don’t forget liability insurance

Written on January 17, 2010 by Greg Yaghmai in Liabilty Insurance
0 Comments - Leave a comment!

You have made the bold decision to finally opening your own business.  You hired a lawyer to draw up the Inc or LLC documents.  You filed them up with your state’s Secretary of the State.  Now your company is legally recognized and your are concentrating on running the business.  There is one thing you can’t forget about: liability insurance.

If you are open to the public, then you should have coverage for someone being injured on the premises.  Almost all leases require that the tenant maintain liability insurance.  More fundamentally, if someone files a lawsuit for being hurting on the premises then you will have coverage for any judgment and legal fees. However, liability insurance typically doesn’t cover business disputes over contracts with vendors or customers.

The premiums are worth the peace of mind and often are legally required.  When clients come to Rutledge & Yaghmai in the formation of a corporate entity, we stress the importance of acquiring the proper type and amount of liability insurance.

Does your Corporation or LLC really protect you personal assets? Maybe not.

Written on December 10, 2009 by Greg Yaghmai in Corporate Structure

There are a lot of one member corporations and L.L.C.s.  The purpose of these business organizations, other than tax benefits, is to protect the owners from personal liability.
A litigator who has obtained a judgment against an L.L.C. or a corporation and wants to get to the owner for personal liability must usually “pierce the corporate [...]

Read the full article »

Credit Card Companies pay $336 million in Class Action Settlement

Written on October 24, 2009 by Greg Yaghmai in Class Action

Reuters reports a Federal Judge has approved a class action of $336 million dollars against credit card companies for overcharging those whose used their credit card internationally.  If you have ever used your credit card internationally you know the credit card companies charge you a 3% fee while in reality it only cost them .25% [...]

Read the full article »

What to do if your small business is sued?

Written on September 23, 2009 by Greg Yaghmai in Litigation

Successful business owners likely have not endured the process of being sued so once it happens they are often wondering what to do.  First, contact your insurance agent to notify them of the suit.  Your General Liability policy may cover the costs of the defense (including legal fees) and any judgments.
While you are waiting on [...]

Read the full article »

Alabama Supreme Court upholds ban on sale of sex toy statute

Written on September 16, 2009 by Greg Yaghmai in Uncategorized

Regardless on your feelings about the decency of a store selling sex toys, you should be concerned when the Alabama Supreme Court begins to make judgments on what defines “public morality” in a person’s private life.
As Associate Justice Michael Bolin wrote in the majority opinion, “Public morality can still serve as a legitimate rational basis [...]

Read the full article »

What coporate structure should you use for your new business?

Written on August 30, 2009 by Greg Yaghmai in Corporate Structure

New business owners wonder what legal form should their business undertake; Inc., LLC, LLP, or GP.  There is no simple answer to that question.  It depends on the goal of the new business.  Is there more than one location?  How many people are entering the business together?  What are the tax implications for each structure?
The [...]

Read the full article »

Wall Street Journal reports Fed Chairman Ben Bernanke’s wife falls victim to identity theft

Written on August 30, 2009 by Greg Yaghmai in Identity Theft

Rutledge & Yaghmai often fields questions about identity theft from victims and business owners.  Ben Bernanke, the Federal Chairman, often warns of the wide spectrum of identity theft.  The Wall Street Journal reports that Bernanke speaks from first hand knowledge.  His wife’s purse was stolen from a Starbucks on Capitol Hill.  The next  day the [...]

Read the full article »

Tags:

3 Most common mistakes made by small businesses in legal matters

Written on August 30, 2009 by Greg Yaghmai in Attorney Client Relationship

Try to handle the matter themselves- So often small businesses try to save “perceived costs” by just trying to handle commercial disputes. The SB owner thinks he can negotiate any type of deal because that how he/she became a successful business owner. Invaribly, the problem gets worse.
Fail to have contracts reviewed- RY [...]

Read the full article »