We all benefit from innovation and risk-taking. The advances and comforts of modern society would be impossible without the risk imposed by factories, machinery

We all benefit from innovation and risk-taking. The advances and comforts of modern society would be impossible without the risk imposed by factories, machinery, and so forth. If starting or joining a business venture meant putting everything you're worth on the line in the case that one employee is negligent, then no sane person would do it. When limited liability is abused, such as when a corporations are undercapitalized[1], then courts can "pierce the corporate veil" and hold its owners personally liable for judgments against the company. [1] Undercapitalization is when not enough assets are kept in the business to pay for its debts or reasonably expected liabilities.