Said It Here

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.

  1. 1
    Starting a single-member LLC
  2. 2
    Obtaining product liability insurance before selling
  3. 3
    Relying on corporate structures to protect personal assets
  4. 4
    looking into specialized startup or event apps like Thimble
  5. 5
    seeking custom underwriting through high-end brokers like Lloyds of London
  6. 6
    purchasing standard general liability umbrella policies

In their words

Unedited, grouped by where they were said, most upvoted first within each place, each linked to the thread it came from.

Hacker News1 person · September 2026

“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 ↗

cpsk · Hacker News · 5 upvotes
r/smallbusiness1 person · September 2026

“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 ↗

EyeTechnical7643 · r/smallbusiness · 1 upvotes

Where this came up

Hacker Newsr/smallbusinessinsuranceliabilityrisk managementstartups

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