What happens if I injure someone while working as a courier

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Guest: Good morning. Good morning. I just have a general question. Um, I drive as an independent courier.

Justin: Okay.

Justin: For a living and uh, I’ve never gotten into a serious accident but there’s some people were talking in the office the other day, what if I were to get in an accident and God forbid, kill somebody or just, you know, maim somebody in my house that I have. Of course it’s not paid for. It’s maybe half paid for though. So the bank owns the rest. What liability, what could happen to me?

Justin: Well are you, uh, is your car in your name or is it in your business name? Do you have a business as an LLC? Is it a sole proprietorship?

Guest: No. Well yes. And sole proprietor, just in my name only.

Justin: Okay. Well what you need to do is probably set up an LLC for your business so then you can separate your personal liability from your business liability. That’s the whole point is to say, um, you know, this is my stuff, my personal stuff, this is my business stuff. So you separate the two and you separate your liability as well. I mean, if you have car insurance,

Guest: I think LLC does that.

Justin: Yeah, the LLC, that’s what the, one of the main purposes of the LLC is to separate liability. It also has some good tax benefits for you as well. But by setting up the, uh, the LLC will help separate you from the business. So that’ll, that’ll help with any kind of liability along with any insurance that you may carry. Um, as far as

Guest: I see, so the car can still be in my name and I can have an LLC, correct?

Justin: Yeah, yeah. And you, and you should have an LLC for doing this kind of work. It’s just always a, no, it doesn’t cost a whole lot of money and it gives you good peace of mind as far as just so exactly what you’re talking about, accelerating the liability for you.

Guest: Okay. And one last question. If I didn’t have an LLC, you were, you know, as soon as I don’t, but let’s say I’m just driving my personal car and a personal errand and, and I, and I hit somebody, then can, business aside, Can they go after the house?

Justin: No, they’re going to hire, they’re going to pursue your insurance generally. I mean, they can pursue you, your, your insurances. That’s why you have insurance for personal, personal injury and property damage that you may cause while driving. I mean, that’s just an accident. That’s not something a out of the ordinary is that that happens all the time. So you’d be protected by your own insurance policy as long as you have a policy, make sure you have a good one. Um, don’t get one of these ones that has the minimal limits. Make sure it’s

Guest: right. Right. Yeah. Okay. Okay, great. I appreciate it. Thank you.

Justin: Yeah, no problem.