A business entity's limited personal liability obviates the need to obtain insurance for significant business liability risks.

Question

Quizplus · Accepted Answer

Limited personal liability does not guarantee protection against all potential business liability risks. It is still important for a business entity to obtain insurance coverage for potential liabilities that may not be covered under limited liability protection, such as claims related to workplace accidents, product liability claims, and professional malpractice.

A Business Entity's Limited Personal Liability Obviates the Need to Obtain