insuring joint ventures

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Insuring Joint Ventures : 

Insuring Joint Ventures

Putting the Pieces Together : 

Putting the Pieces Together Joint ventures are a legal entity and need insurance protection. Joint ventures are formed for a specific project, to take advantage of a special relationship, or to create equity shares of an ongoing activity. Joint ventures can be corporations, limited partnerships, limited liability corporations, or a partnership.

What’s the purpose? : 

What’s the purpose? The purpose of the joint venture is the first key factor that must be addressed in order to design the appropriate insurance program. If the joint venture is for a short period of time, a limited period of time, or an ongoing period of time that will all determine the design of the general liability insurance program. Clearly the purpose of the joint venture and the length of time that the joint venture is to be in existence will have a great impact on the insurance coverage and limits.

Slide 4: 

There are normally four different avenues of providing insurance for the joint venture: One option is for each individual member of the joint venture to cover their own exposure within the joint venture with their own insurance program. The second option would be for the managing partner of the joint venture to procure insurance in its totality for the joint venture as a whole. The third option is for the joint venture to have the commercial general liability insurance, workers compensation insurance, umbrella insurance, etc., all in the name of the joint venture in the design of the insurance program. The fourth option which is not recommended very often is for one member to extend his or her insurance program to cover the joint venture and to extend the coverage for all the members within the one member’s personal insurance program.

Strategy! : 

Strategy! Knowing which insurance strategy to use of these four options can mean the difference between success and failure in designing the appropriate commercial general liability insurance program. A good way to start strategizing is by using www.commercialinsurancequotes.org

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