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Roger, Attorney
Category: Business Law
Satisfied Customers: 31788
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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My husband and I own a commercial building. My husbands business

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My husband and I own a commercial building. My husband's business (a corporation) uses the building for manufacturing. We have a loan on the building. Our lender requires us, as the owners of the building, to have insurance on the building. We have insurance (Business Personal Property and General Liability) though the business, and the personal insurance we have covers the same types of instances (slip and fall, etc.) Since we do not do any retail business, and we are covered by the insurance for the business already, as well as covering employees through Worker's Comp, do we really need the second policy (the one covering us personally)?
Hi - my name is XXXXX XXXXX I'm a litigation attorney. Thanks for your question.

If the property is titled in your individual names, then you should maintain the personal policy to protect you and your husband in the event that someone is injured on the property. This is so because if someone is injured, they will sue the property owner (you and your husband) as well as the business for injuries.

Thus, it's probably worth the expense to have this coverage just in case.
Customer: replied 4 years ago.

The policy through the business is large. If we didn't have insurance and have little assets would the person suing even bother going after us? Do we need a $2 million liability policy like the business has?

The plaintiff's attorney is going to go after whomever has the money or a big insurance policy, but that won't prevent or protect you from being sued.

It may not be necessary to have a policy quite as large as the business, but you definitely should have a policy covering you to protect personal assets.
Customer: replied 4 years ago.

My husband worries that having a personal policy just makes us more likely to be sued. In your experience, if a suit happens and the individuals have few assets while the business has insurance, would the suit for the individuals be pushed, dropped, or what? Does it all happen in one legal proceeding (one trial, if it goes to trial) or does each individual involved get sued and followed up separately? It is not cheap to get this insurance, and if it is actually a liability then it doesn't make sense.

You're going to be sued either way - - the plaintiff will not know about insurance coverage until after you are sued. If the plaintiff found out that you had no insurance coverage, it would not likely cause you to be dropped from the lawsuit, but it would likely make the focus (in terms of settlement) on the defendant that has insurance.

You would all be sued in the same lawsuit, and each of you would have to respond to the lawsuit separately.
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