What Is Limited Liability Insurance?

Video Transcript

"Limited liability would typically pertain to like a limited liability corporation where they would want to limit the liability of the owner's of that business to the property that is owned by the business. So if you own a business of your own, you in the event of a loss of somebody becoming injured, of a lawsuit, etcetera, you would not want that amount to exceed the cost of the business and the assets within that business. You wouldn't want to have your home, personal property, etcetera, attached to that business and that's why a lot of people go with the LLC's, the Limited Liability Corporation. Now obtaining limited liability insurance would provide you coverage for those specific business things that I mentioned before through the business and you can pay for that and often times it is tax deductible. That would provide you any types of loss that occurred through the business. So if you have assets, you have goods that you sell, you have property, in the event of a lawsuit or a major catastrophic loss, this liability insurance would be able to cover the business so that you don't lose everything that you've put into and all the hard work that you've put into over the years."