Do You Need Insurance After Shutting Down Your Business?

Do You Need Insurance After Shutting Down Your Business

Shutting down your business does not by itself eliminate the possibility of a liability claim against you. A business that manufactured or sold products may still be blamed for a future injury. A completed operation, such as a built house, could crumble tomorrow as a result of faulty workmanship that took place months or years ago, and the builder could be sued because of that. Or a computer network you designed could be found liable for a data breach after you have closed up shop. If you plan on shutting down your business, consult with your insurance agent or broker about the continuation or lapse of insurance coverage for the business. There may be a policy that could respond in the event of a claim against you after your business is closed.In addition to your insurance agent, you should seek advice from legal council. An attorney should be able to help you understand—based on the law in your jurisdiction—what future liability exposures you or your business may have.