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Holding off on a start-up may be wise


Many individuals interested in forming a start-up company are so excited about the prospect of having their own business that putting it off doesn't seem like an option they would like to consider. However, according to business attorney Nina Kaufman, waiting may be the best option if the future business owner does not have enough funds to adequately protect their business against lawsuits.

One individual wrote to Kaufman on her blog on to inquire about how to protect herself from lawsuits for a business endeavor she is considering. She also stated that she cannot afford liability insurance.

Kaufman advises the writer that there is no way to protect a company from being sued, as someone may bring a claim against a company whether it is founded or unfounded. Even waivers may have a limited ability to reduce the risk of suit, she says, as they may not be comprehensive enough to cover all potential claims.

However, business owners may be able to reduce the impact of a lawsuit by having business insurance coverage.

"If you can't afford insurance at this time, you may want to go back and crunch the numbers to get a clear handle on your start-up costs and timing," Kaufman says. "If you'd really rather be safe than sorry, you may want to wait until you have the funds available to invest in the right insurance and professional services that can offer you some protection." 

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