Tort Liability of Partners
No Personal Liability Protections
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Are Partners personally liable for business torts?
General partners are personally liable for the torts of the partnership. Likewise, the partnership is liable for the acts of its agents, which includes any partners or employees of the business. As such, each partner is potentially personally liable for any tortious conduct by any partner or employee of the business that is done in furtherance of business operations. This is a tremendous risk for the partners and the greatest disadvantage to the general partnership entity. We discuss the concept further in the lawsuits section of Startup Legal Resources.