How to protect personal assets from lawsuits after closing a business
Closing a business and stopping insurance leaves founders vulnerable to long-tail product liability claims years down the line. Finding coverage for high-risk or unusual products like robotics is already nearly impossible, leaving business owners facing daunting personal asset exposure with no clear way to manage the leftover risk.
What people tried
Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.
Found another way around this?
Share your steps and trade-offs so fellow engineers don't have to reinvent the wheel. No account required.
- 1Starting a single-member LLCDid this help you?
- 2Obtaining product liability insurance before sellingDid this help you?
- 3Relying on corporate structures to protect personal assetsDid this help you?
- 4looking into specialized startup or event apps like ThimbleDid this help you?
- 5seeking custom underwriting through high-end brokers like Lloyds of LondonDid this help you?
- 6purchasing standard general liability umbrella policiesDid this help you?
In their words
Unedited, grouped by where they were said, most upvoted first within each place, each linked to the thread it came from.
“It feels like an daunting and impossible task to find insurance for a company trying to rent humanoids for events and parties.”source ↗
“a small company that is trying to build rent robots for parties or conduct educational workshops using humanoids cannot get even general liability.”source ↗
“However, I have to think through product liability and gauge the risk to my personal asset.”source ↗
“Let's say a couple of years later I close down the business and therefore stops insurance, and then let's say someone get hurt or sues me later on, how can one manage this kind of long tail risk?”source ↗
Where this came up
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