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  1. #1
    Join Date
    Mar 2002

    Does anybody have liability insurance on their LLC

    I formed a LLC to build some homes. The land is owned by a corporation. The LLC will own the homes and manage all the construction work.

    Does anyone have additional liability insurance on their LLC and who wrote it and how much for a million or two. Should I just let the LLC protect my personal liability?

    Has anyone had their LLC veil broken in court?

    I get very mixed anwsers from attorneys and insurance salesmen. I have heard that a homeowners policy on each home might be the best way to go.

    Thanks for your help.

  2. #2
    Registered Playn's Avatar
    Join Date
    Jan 2001
    You've pretty much protected your personal assets by forming the LLC. Now you need to decide how much to protect the Corporation. What kind of exposure does the Corporation have? Are you building multiple homes at one time in a Subdivision the Corporation owns? Model homes where you are inviting the public onto the jobsite or streets and creating more of a risk than a typical construction site? I don't think the "home owners" policy is going to be a viable route. The Corporation has an investment to protect (not just sticks and mortar) but it's assets as well.

    We're in Commercial Construction (S Corp) and do carry an Excess Liability - Umbrella policy of $5,000,000. for what it's worth.

    Good luck in your venture!

  3. #3
    Platinum Member Platinum Member mcollinstn's Avatar
    My Boats:
    1991 F311SR1
    Join Date
    Sep 2001
    In Tennessee, LLC's have not been properly tested to show their "durability" whereas corporations are solid as concrete.

    Your question is best answered by an attorney in your state.
    I see London, I see France...

  4. #4
    Charter Member Charter Member 32fever's Avatar
    My Boats:
    37 Outerlimits & PowerPlay 185
    Join Date
    Feb 2001
    Granger, IN
    Good question.
    Basically, you can be an LLC and taxed in any way you like.

    We went through a big mess, I spoke with attorney's in my area and out of it. In the end, I found no attorney that knew what the f he was talking about (and I spoke to attoreny's supposedly "experts" or focusing in those things). I was very dissapointed in their abilities and lost a lot of respect for the profession.

    In the end, our accountant helped as she went to a seminar on the formation of companies and an expert explained the whole thing. The trick is finding that person that actually knows what they are talking about. You can find attorney's that use big words, but they don't know what they're talking about.

    My only advice is keep looking till you find someone that knows something. If they talk in circles and seem to repeat things you can read in a book or on the net, leave them, go elsewhere.


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