Do we need liability insurance on property or should we incorporate?

If an organization has deed to an old cemetary no longer providing burial, should
there be liability insurance carried in case someone comes on the grounds and is
injured. Or would it be best for organization to incorporate to provide coverage.

Asked on May 18, 2016 under Business Law, North Carolina


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

The answer is "yes": you should incorporate and you should have insurance. Being a corporation will protect the owners (shareholders) and managers of the corporation from most personal liability, but not all: there are times when they could be personally liable, such as if they personally act in a wrongful or negligent manner (in which case, liability is based on their personal action or omission, not on their membership in the organization).
Having insurance will provide protection where the corporate structure does not shield individuals, and will also protect corporate assets.

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