I don’t want to scare you. Really, I don’t. (Actually, come to think of it, maybe I do, if that’s what it takes to get your attention… this is muy importante.)
Did that make you cringe as much as it did me?
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But, you DO have personal liability business insurance, right? (Please say yes. Please please please say yes!)
Personal liability insurance (also known as errors and omissions or malpractice insurance) is de rigueur, which is a very fancy (French) way of saying, “absolutely-necessary-are-you-kidding-me?”
And don’t think you’re off the hook if you’re an LLC or S-Corp; if you’ve allowed your finances to commingle, a court could order your personal assets to be seized to satisfy the judgment.
Lawsuits happen, no matter how baseless the claims may be. You have no choice but to fight them. Insurance covers you for errors you may have made, or for service a client or customer claims you omitted, and which (allegedly) caused an unfavorable result.
This is why it’s so important to have all those legal docs on your website to reduce your liability. *
Be sure your insurance also covers the cost of legal fees; otherwise, even if the claim is baseless, you could be stuck with all the costs of having to defend yourself.
Everyone makes mistakes. Let’s not have one of those mistakes be that you didn’t cover your assets online; certainly not after all the squawking I’ve been doing to make sure you cover up!