From sole proprietor to LLC? From LLC to S-Corp? Or maybe a new partnership is on the horizon.
Maybe your business practices haven’t significantly changed, but on the advice of your legal and/or financial counsel, you are considering a change to your business’s legal status or adding a new business entity, such as a subsidiary.
Don’t forget to report this change to your insurance agent or broker!
A change to your business’s legal structure likely will affect how your business insurance policies cover losses. For example, the general liability insurance for your existing business might not cover claims of bodily injury or property damage filed against the new entity. Management liability policies and other important coverages will most likely have to be rewritten, or at least modified.
Keep those policies up to date for the best financial protection for your company.
