Legal Question in Business Law in Maryland
LLC vs Insurance
I am a licenced architect who is starting their own company. At what point does the LLC stop protecting my personal assests for a bad design? If my company was sued for a bad design why should I have insurance if it is an LLC and the company can simply go bankrupt?
Thanks!
1 Answer from Attorneys
Re: LLC vs Insurance
AS A GENERAL RULE, a limited liability company does not protect your personal assets from certain types of personal or professional negligence or debts of the company that you guarantee.
You should retain counsel who is used to representing architects to discuss in detail your personal liability even with a LLC or corporation.
(This response does not create an attorney-client relationship and should not be relied upon except to discuss the general concepts with a retained attorney who can advise you in greater detail about your corporate and personal liability and risks of not having insurance.)
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