Sevan owns and operates South Asheville Bistro.The bistro is organized as a general partnership, with Sevan and his mother serving as partners.His mother is no longer actively involved in running the business.The bistro has never been sued, but Sevan is very concerned about reports from his restauranteur friends of large judgments from lawsuits by patrons who choked on food, suffered an allergic reaction, and so forth.Such a judgment would force the closure of the small restaurant.

Sevan has traditionally guarded against this risk by purchasing liability insurance in the bistro's name.Disappointed with menu changes, his mother wants to exit her relationship from the business entirely.

Sevan asks you, his lawyer, whether it would be a good idea to (1) covert his business to an LLC and (2) drop his liability insurance.What advice do you give him?