Dangerous Asset
Categories: Insurance, Accounting
Dangerous assets owned by a company are those that carry a greater risk of personal injury or property damage.
This could include motor vehicles, construction equipment, and even commercial real estate. The equipment could cause harm to the driver or bystanders, and you would also be liable for any injuries that occur in your commercial building.
Some companies keep their dangerous assets separate, such as in a real estate trust if it's commercial property, or a limited liability corporation (LLC) for motor vehicles. You can also expect to pay higher insurance premiums on dangerous assets. Especially if "Danger" is your middle name.