If I’m setting up a personal training company, should I set up an LLC or is personal liability insurance sufficient to protect my assets?

UPDATED: Apr 26, 2011

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If I’m setting up a personal training company, should I set up an LLC or is personal liability insurance sufficient to protect my assets?

I am a certified personal trainer and am planning on providing on-line training services. I want to protect my personal assets. Is personal liability insurance sufficient to do so? Should I establish an LLC? If I set up an LLC, should I also obtain personal liability insurance? If I should obtain the liability insurance, how should I set this insurance up? Should the primary insured be the LLC, myself (who will be the owner) with the LLC as as additional insured on my policy, or does it matter?

Asked on April 26, 2011 under Business Law, North Carolina


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Do both:

1) Set up an LLC, or limited liablity company. That way, many cause of action (such as for breach of contract, debts owed, injuries caused by your employees, if any, etc.) can only be brought against the LLC, and not you personally.

2) Get insurance. There are some causes of action that could be asserted against you as well as the LLC. For example, say you personally are training someone and injure them somehow; you could personally be sued, as the person causing the harm, and your business could be sued, too. (LLCs do not protect one from liability for harm one personally did; they protect from business-related harm or obligations.) Insurance will provide an extra layer of protection.

3) As for who to insure--best bet is to discuss the matter with a reputable insurance broker, explain the situation, and follow his or her recommendations. You could--and should--get at least two different opinions.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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