Asset protection is important. I for one, believe that in everything we do, it is essential. Whether it is for your personal use, business and other activities. It basically serves as a wall of protection from bad things that can happen to you like identity theft among other things. This is one of the reasons why even in business, companies believe that asset protection is a key element that must exist to flourish economic growth and stability.
To summarize, this protection can:
- Shield your assets
- Protect your property against credit claims
- Prevent complaints
- Provide company security
So what tips can you do to protect your assets? Here are a few tips.
Asset protection tips
- Choose a good investment.
This doesn’t mean that you should invest in a venture or any other business. This simply means you should have asset protection through a good investment. Take for instance investing in insurance for a car or a house. These are examples because insurance is a means of protecting property you own from uncertainty like theft, fortuitous events, and accidents. You took the time, effort, and money to buy your assets, so why not have a good investment that is capable of providing full and detailed asset protection.
- Look into the different kinds.
There are many types around. In fact there are even three categories of them: liability-limitation, wealth-segregation, and insurance-type. Each category is catered to different issues so you may want to learn about each first before getting some or all of them.
Liability-limitation asset protection
The name speaks for itself. Liability-limitation asset protection simply entails that for any asset incurred or invested there are certain limitations to the liability that the company may incur. If for instance, things get out of hand in the company, and the company will end up losing investments or potential assets invested in the company liability-limitation asset protection ensures that it will not include the owner’s personal properties and assets that are completely outside company jurisdiction.
However, if liability-limitation is not availed of, the company may lose not only its existing assets but also the owner’s investments to the company and his personal properties. Everything will be taken. This type of asset protection usually charges big because it usually covers personal assets of really big businesses and investors. So consider the rates and the charges.
Wealth-segregation asset protection
Through this method, your assets will be protected against creditors who aim to obtain them. One good example of this is the bankruptcy law. Once you file for bankruptcy, your assets are protected from credit claims. After the bankruptcy proceedings are sorted out and the court issues a written order, preventing creditors from claiming against you, creditors can no longer make claims or harass you to pay.
However, there is something important you need to know before doing things like filing for bankruptcy. Filing for bankruptcy should be the final and last resort because although your assets are fully protected, it could leave an irreparable damage to your credit history should your company thrive again. So look into other types of wealth-segregation asset protection and see for yourself what you avail of that would bring the least damage to your business.
Insurance protection is the most common of all. In insurance, you would simply have to pay a sum certain in money in exchange for an insurance policy that you will use in cases like accidents, fortuitous events, theft and more. As long as you pay for your premiums, insurance companies will be the one to shoulder the cost of accidents, theft or any other liabilities stated in your insurance policy.
But, because it is the most common type of asset protection, you would have to be smart in choosing the company for you. Some policies may sound promising but you may end up paying more than you can get. Try to shop around, and compare prices first before you decide to choose the right insurance company to transact with.