Business risk, insurance and liability planning

Topic preview

1. 01

   Assess business risk types

   List the main business risks a client should assess before choosing a structure: claims exposure, debt exposure, regulatory exposure and personal asset exposure.

2. 02

   Personal versus limited liability

   Explain how personal liability differs from limited liability when the business incurs debts or faces a claim.

3. 03

   Insurance cannot replace structure

   Describe why insurance cover may help with a loss but cannot be treated as a substitute for the right legal structure.

4. 04

   Policy cover limits and exclusions

   Say what you would check in a policy before advising a client: scope of cover, exclusions, excess, limits and renewal date.

5. 05

   Borrowing and investor needs

   Explain how borrowing or outside investment can affect the preferred structure for a business.

6. 06

   Check cover limits and timing

   Give a short client warning for a professional practice or start-up that assumes limited liability alone is enough protection.

7. 1 more building block

   The full topic unlocks with FLK1 Playbook, including the remaining prompts and answer-key marking.