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How to secure your assets - Properties - Help please!

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  • 12-12-2014 10:17pm
    #1
    Rocktoitnow
    Registered Users Posts: 4 ✭


    Hi i'm wondering if anyone can help me please, in short i'm looking for advise for the best way to have my properties fully protected in the event that a case was brought against me.

    So to fill you in i have two properties that i own and rent out, one is insured for just contents as the managment fee covers the block etc. The other property however has full insurance as it's classed as a house and not an apartment so i got the full protection.

    So here's where my issue is, I'm also a sole trader doing aerial photography & videography and have full public liability etc at €6.5 mill. Now i know...god forbid if anything happened they can still come after your personal assets. This is a big worry for me even though i currently operate correctly but i want to be sure that the properties are safe so i'd really appreciate it if anyone could shed some light on what to do.

    My first thought was to make my business a limited company which means any claims against it would only be on the business but is there any other way i can protect my personal assets i.e properties without having to ltd the business or is that the safest and easiest way?

    I'd really appreciate any help, thank you and i'll look forward to your advice!


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    #2
    thecreek
    Registered Users Posts: 9 ✭thecreek


    Hi..
    thrust me ......there are very few advantages to being a soul trader, maybe the accounts are just a little easier to handle but the risks associated are much larger.
    For my next business if I can ever get out of my current soul trader deep rut I'll be a ltd co.!!!!!!


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    #3
    jimmii
    Registered Users Posts: 14,810 ✭✭✭✭jimmii


    If you want to limit your liability then ltd is probably your best bet. Plan on doing the same for the same reasons next year. Not worth the risk in the unlikely case that something does happen.


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    #4
    pedroeibar1
    Closed Accounts Posts: 5,108 ✭✭✭pedroeibar1


    Rocktoitnow wrote: »
    Hi i'm wondering if anyone can help me please, in short i'm looking for advise for the best way to have my properties fully protected in the event that a case was brought against me.

    So to fill you in i have two properties that i own and rent out, one is insured for just contents as the managment fee covers the block etc. The other property however has full insurance as it's classed as a house and not an apartment so i got the full protection.

    So here's where my issue is, I'm also a sole trader doing aerial photography & videography and have full public liability etc at €6.5 mill. Now i know...god forbid if anything happened they can still come after your personal assets. This is a big worry for me even though i currently operate correctly but i want to be sure that the properties are safe so i'd really appreciate it if anyone could shed some light on what to do.

    My first thought was to make my business a limited company which means any claims against it would only be on the business but is there any other way i can protect my personal assets i.e properties without having to ltd the business or is that the safest and easiest way?

    I'd really appreciate any help, thank you and i'll look forward to your advice!
    Stop complicating the issues. Keep it simple. You have assets – properties – and a business activity as a sole trader. You have wisely bought insurance policies to protect your property assets and also to protect your business activities (PL cover) up to €6.5 million. So your drone/camera/whatever flies into something and causes an accident – you are protected up to €6.5m provided you have obeyed the terms of your policy. Loads of cover/protection. There is an argument that buying another policy would put you in a worse position as the two insurers could then fight over which one had liability and you could have a nasty legal mess. Go to bed and forget about it!


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    #5
    dbran
    Registered Users Posts: 2,094 ✭✭✭dbran


    pedroeibar1 wrote: »
    Stop complicating the issues. Keep it simple. You have assets – properties – and a business activity as a sole trader. You have wisely bought insurance policies to protect your property assets and also to protect your business activities (PL cover) up to €6.5 million. So your drone/camera/whatever flies into something and causes an accident – you are protected up to €6.5m provided you have obeyed the terms of your policy. Loads of cover/protection. There is an argument that buying another policy would put you in a worse position as the two insurers could then fight over which one had liability and you could have a nasty legal mess. Go to bed and forget about it!

    ....and that is the problem. If the insurance company don't pay out for some reason or other then you are in trouble. Just form a limited company.

    Dbran


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    #6
    pedroeibar1
    Closed Accounts Posts: 5,108 ✭✭✭pedroeibar1


    I agree a limited company would nearly be a failsafe way but there would still be risks, particularly from any prosecution under health & safety legislation – e.g. operator using a drone in very adverse conditions. IMO a sole trader with a policy he understands/adheres to would be fine, it’s not that difficult to do so. The only times I have ever seen claims turned down by an insurer was when there was a total failure to meet the basic T's & C's of a policy and almost all involved ignoring common sense risk mitigation, like having a sprinkler system in working order or turning on an alarm that incorporated a fire detector. Another was denied because there were false declarations on the proposal form and another involved double insurance and consequential argument as to which insurer had liability (common sense to split 50:50, but it took an action in the HC to force that to a settlement.) In the past some insurers (e.g. Quinn and before them PMPA) were notorious but a writ usually sorted that out and several lawfirms built a practice on their behaviour!


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    #7
    Rocktoitnow
    Registered Users Posts: 4 ✭Rocktoitnow


    pedroeibar1 wrote: »
    I agree a limited company would nearly be a failsafe way but there would still be risks, particularly from any prosecution under health & safety legislation – e.g. operator using a drone in very adverse conditions. IMO a sole trader with a policy he understands/adheres to would be fine, it’s not that difficult to do so. The only times I have ever seen claims turned down by an insurer was when there was a total failure to meet the basic T's & C's of a policy and almost all involved ignoring common sense risk mitigation, like having a sprinkler system in working order or turning on an alarm that incorporated a fire detector. Another was denied because there were false declarations on the proposal form and another involved double insurance and consequential argument as to which insurer had liability (common sense to split 50:50, but it took an action in the HC to force that to a settlement.) In the past some insurers (e.g. Quinn and before them PMPA) were notorious but a writ usually sorted that out and several lawfirms built a practice on their behaviour!

    Perfect thanks for clearing this up everyone, i think it' best to do some and it will give me that extra bit of security that i want, i made a few enquiries and to get it all up and running you are looking at €600-€700 by an accountant which isn't too bad!


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