How to Protect Your Business
By Space Coast Daily // October 22, 2020
You’ve worked hard to start your own business and get it running smoothly. It’s important to make sure the business that you’ve invested so much time, money, and care into is protected.
Many startups or small business owners wait to think about protecting their business until after it has been threatened with a legal situation.
Waiting to think about it can only lead to problems! Having protections in place and a plan for when problems like that arise will keep you from unnecessary stress or even from losing your business.
Lawsuits to be Prepared For
Some business owners may purchase insurance and call it a day when it comes to protecting their business, but there are numerous lawsuits that you are vulnerable to as a business.
Reading about them now and being aware of potential lawsuits can help you avoid causing them or help you be prepared when they do occur.
Multiple businesses have dealt will all of these at times:
Breach of Contract: A breach of contract can happen in various ways depending on your business. It could mean incorrect items were delivered, that a product was faulty, or that a service was not paid for.
If one party that you have done business with feels you are at fault, they may sue you for breach of contract to attempt to gain restitution.
Premises Liability: In the unfortunate event that your company is the scene of a violent crime, you could be served with premises liability.
This means that the injured party is suing you for having what is deemed as “insufficient” security. This could mean that your business lacks security guards, security lights, or any other potential security precaution.
Discrimination: Discrimination lawsuits could come from customers or employees. Discrimination lawsuits are difficult to handle not only in a legal sense but also in the media if the lawsuit draws attention. This is when having legal counsel you trust can be particularly important.
That way when it happens you can rely on them for help during the lawsuit and spend more time making sure your company’s image remains safe and that all current employees and customers do not feel they are facing discrimination as well.
What Protections Should You Have
If you own a business, you are used to managing multiple responsibilities at once. When it comes to protection, having only one isn’t enough.
Just like your multiple responsibilities, you will have multiple protections to put into place as well. You can choose out of numerous protections that will work best for you. Any of the below protections may be applicable for your business:
Hire a Lawyer: Hiring business lawyers especially before you feel you need them can seem daunting to a new business owner, but understanding what options you have is crucial.
Not only are they critical when major legal issues arise but business lawyers can also help you create contracts for customers, correctly hire employees, or apply for licenses or permits that may be necessary for business.
Incorporate Your Business: Incorporating your business is another aspect a business lawyer may be able to assist you in. It is beneficial to form your business into something like an LLC or corporation to protect your personal assets.
Without incorporating, if you get into legal or financial trouble you could risk losing all of your personal assets such as a home or car.
Be Sure Your Insured: Make sure that your business at least has liability insurance. This will help protect you in case of an accident that results in an injury such as a fall on your premises. You may even consider purchasing errors and omissions insurance in case you are accused of not performing a service or creating a product correctly.
Is Your Business Adequately Protected?
In conclusion, it can greatly help you protect yourself and your business to make sure you develop the right combination of protections.
Often having a connection to a lawyer or legal counsel and making sure you are insured, can give you security for your business. Don’t wait to think about what protections you need to put in place for your business because if you wait too long it could be too late and spell disaster for your business.