These days, insurance is almost second nature. Whether it's your car, boat, business or health your insuring, it's the obvious solution to protect against unexpected mishaps. While the go to strategies are important, there's so much more business owners can do to ensure they don't get caught out. In truth, the best way to protect against loss of assets is to have a number of protection mechanisms in place, commonly known as an Asset Protection Plan.
Here are 5 top tips that you can implement to protect your assets.
- Employ best business practices
- Get adequate insurance cover
- Spread your risk
- Be smart with your home ownership
- Be super savvy
Employ best business practices
This may seem an obvious point, but the less likely to be sued you are the better. By employing ethical business practices and obtaining the correct financial and legal advice, businesses can greatly assist in reducing the likelihood of being involved in litigation.
Get adequate insurance cover
Having adequate insurance cover is an easy way to protect your personal and business assets. This is a must have and any business who doesn't have the appropriate insurance cover is treading on thin ice. However, don't put all of your eggs into the insurance basket.
Spread your risk
Separating business assets is a great way to spread and reduce risk. Consider creating multiple entities where ownership of key assets are separate. This way, if a claim is made, only one entity may be effected.
Be smart with your home ownership
We all know the family home is one of our most valuable assets. So, a great tip is to have this asset in the name of a low risk spouse or family member, rather than under a business entity. This way you can stay clear from capital gains tax, reap other tax concessions and keep your family assets in tact if a claim is made against the business.
Be super savvy
Unless the ships already sinking and you're transferring large sums of money into your superannuation account on the way to court, your super has statutory protection from creditors.
Not only this, Self Managed Super Funds (SMFS's) can provide more flexibility and control over assets compared with some corporate or industry super funds. The fact is, with a bit of planning and sound advice you can ensure both your personal and business assets are protected.
Want to find out how to protect your assets and get some sleep at night?
Contact us at firstname.lastname@example.org to start the conversation about getting the right Asset Protection Plan.