Incorporating: One Company Many Jobs

business insurance umbrellaIn this day and age to survive a company, you generally need to be diversified. Diversification is important to stability and growth, but one area that is overlooked is often the placement of the insurance. It’s important to discuss the structure of the companies with an attorney when you are incorporating, and that attorney should realize how they structure the company will affect the way the insurance is put in place.

I recently had a client that was an architect who also has a contractor’s license so that he could oversee the project management of his designs. He does not do any of the construction work himself, but both types of work are covered under one corporate name and the website also outlines all of his work. This created a huge problem when trying to get insurance for the company. The architect side would be easy but the underwriter doesn’t like the project management side and vice versa.

Simply having each business with a separate corporate name then covering them both with a DBA will resolve this issue. Each company can simply be placed with the insurance carrier that is comfortable with the risk and the website can show all the work performed with no one knowing how the company is structured behind the scenes.

Incorporation is outlined in my book which can be downloaded at

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