No matter what your industry or profession, it also is wise for you to stay informed. Many times, whole industries change ways of doing business based upon legal liability. Staying informed about the issues that face your business, and your potential liabilities, is a good way to avoid unexpected problems. Whenever possible, separate risk from asset. As part of the evaluation process for any competent litigator, a determination must be made as to whether a potential defendant has assets to satisfy a potential judgment.
Nothing is more effective shark repellent than the prospect of an uncollectible judgment.
It is therefore important to try to separate those aspects of your business that might produce risk and liability from those aspects of your business that represent the accumulation of assets. This can be done in a variety of ways, from the simple to the complex. Simple methods include setting up single asset corporations to hold real property, and leasing that property to the overall business entity. As long as all the formalities of corporate structure are adhered to and respected, and the corporations are, in fact, treated separately for commercial and tax purposes, then each will be responsible only for its own liabilities. Tailor an insurance program to fit your needs.