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On the other hand, imagine losing your house, car and savings because somebody finds a bug in your product and sues you...

• rayiner 14y ago
  Presumably if you're designing products that could cause that much damage if they malfunction, you can buy insurance against any resulting problems. Limited liability is a public subsidy for big business--it reduces the cost of inherently risky business activity by shifting those costs to the injured public rather than to the business owners. It's really arguable whether such incentives are needed and whether liability insurance wouldn't be a more appropriate measure.
  • debacle 14y ago
    Most LLCs have assets and thus require liability insurance anyway. The tech sector is a small slice of the business space. Lets phrase it another way - you get a bad shipment of chocolate from a supplier, and your cookies send a handful of kids into allergic shock from the peanuts tainting the chocolate. One of them dies. You're likely going to be sued, and your liability insurance is likely a drop in the bucket (enough to cover your business assets). Do you still deserve to lose your house?