My partner and I own a small business
. Recently we had 2 fires (!) 2 weeks apart.
The first fire was determined to be an accident in the wiring of the building wall and not our fault. The second seems to have been from an overloaded power strip and likely our fault. (We are awaiting official reports.)
We moved into this office 3 years ago and our lease it states that we should have insurance. (We did at our previous office) My partner forgot to get the insurance! (He wasn't being cheap, he really just forgot, and the building never asked for proof as our previous office did.)
The building asked us to leave and we signed a letter that we would not sue each other.
2-3 other offices may have sustained damage as well mainly due to the water from the fire dept.
We are a small company with no assets and actually are in debt.
Here are my questions.
1 - Can my partner and i be sued personally? We are incorporated.
2- As the company is in debt and has no assets, would it pay for anyone to sue us?
3- Would we be better protected if we close the company and restart as another?
I'm sure we'll get contacted by insurance companies soon. Should we respond?
(A friend with a legal background told me that my partner and I are not personally responsible as we are protected by incorporation and since we have no assets and just debt, that it wouldn't pay for anyone to sue us. )
For now, this is all we need to know.
Anything you may add would be helpful.