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joint and several liability
Are There Mitigating Strategies?
Yes, there are several strategies that business partners can employ to mitigate the risks of joint and several liability:
Insurance
: Partners can obtain liability insurance to cover potential claims.
Indemnification Agreements
: These agreements can stipulate that partners will indemnify each other for any payments made on behalf of the partnership.
Limited Liability Structures
: Forming a
limited liability company (LLC)
or a limited partnership can limit the personal liability of partners.
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Are There Mitigating Strategies?
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