Having a vehicle-based business can be financially rewarding. The logistics industry is one of the most profitable businesses in the USA and plays a major role in its economy. However, this success doesn’t come without its risks.
With vehicles, there is always the chance of accidents on the road, which can result in injuries and sometimes even fatalities. This can lead to legal troubles and the owners paying huge compensation claims. To avoid any legal and financial risks, you need to protect your assets with legal counseling.
Limit Personal Liability
The first step you need to take before your vehicles go on the road is to protect your personal assets. You need to first decide between corporations and limited liability companies to protect you in case an issue arises.
If you run your operations as sole ownership, you make it easy for creditors to reach your personal assets and use them in court. Choosing cooperation will make your business a separate legal entity, independent of your personal assets. So if your company faces any liability, you are in the clear.
Additionally, you will need to protect both your personal and business assets by creating a separate limited liability company or LLC for all your vehicles or any other valuable machinery or equipment that your company uses. Once your equipment is placed under an LLC, they are leased to your operating establishment.
Separating your equipment from your operating cooperation will protect it from creditors in case of a lawsuit. This may sound complicated, but an experienced lawyer will walk you through all the steps and guarantee that your personal and business assets are protected.
Review Your Contracts
One mistake with your contracts can have catastrophic consequences. For this reason, you need to have a specialized attorney in insurance and transportation to create any of your business’s contracts.
A lawyer will ensure all the essential details and clauses are included and avoid ones that are against the law. If you work with different clients, you need to make your terms and conditions very clear.
Additionally, you need to customize a different contract for each client and branch of your business. For instance, if you run a trucking company, you can’t have one contract for shipper broker carriers, shipper brokers, and shippers.
You may think, having the same contract will save you money. On the contrary, it is going to be costly if one of your trucks gets in a serious accident, which brings us to the next point.
Accidents Can Happen
Any vehicle-based business needs to regularly maintain its cars and machinery, and screen the drivers to ensure they are fully equipped to operate the vehicles. However, you can do everything required of you and accidents will still happen. Just like how you protect your vehicles to prevent accidents, you need to protect your business and be prepared in case one happens.
If you run a trucking company, you are probably aware of how serious their accidents can be. As mentioned, the logistic business is booming in the USA right now, with Texas taking the lead in the trucking category.
If your business is based in Baytown, Texas and one of your truck drivers gets in an accident, then a truck accident lawyer in Baytown, TX can most effectively help with investigating the accident and holding the responsible party accountable by state laws. It is essential that you hire a specialized attorney who isn’t only familiar with accidents and personal injuries laws but is also familiar with the laws of the state where you run your business.
Insurance
Naturally, you should have your company and your vehicles insured. That said, you should know that insurance coverage is usually limited to your policy. However, if you get sued, there is no limit to what you will be asked to pay up.
Insurance companies only look out for their best interests, and they will always try to find ways to avoid payment. For this reason, you will need a lawyer to review the insurance coverage of your transportation liability and exclusions. In case of any accidents, it is best to let your lawyer handle all of the negotiations. They are experienced and know how to handle an insurance company should they deny your claims.
Protecting your vehicle-based company should be your number one priority before you take your business to the road. Vehicles can get in accidents and if you get sued, it can bankrupt your company. Limiting your personal liability will go a long way toward protecting your assets.
Additionally, all the contracts that you sign with clients should always be reviewed by your legal team. You should also seek the help of an experienced accident lawyer in case of vehicular accidents or insurance claims. Legal counseling will protect your business, its reputation, and finances.
