Quote:
Originally Posted by MBAtarga
Insurance costs would be in opex - but what about liabilities - injuries, etc - law suits?
|
You mean, liabilities not covered by, or exceeding the limits of, the insurance? Like someone gets sloshed and falls during a wedding and becomes a quadriplegic and is awarded $20 million?
Good question. Our neighborhood association has bank accounts but no other assets. Our board and volunteers are covered by a $1 million liability and D&O policy, which I need to review. We could buy lots and lots more insurance coverage, I guess. Maybe structure a holding company.