As the business leader, it’s your duty to do everything possible within your ability to minimize business risk and to keep things running normally. The unsolved puzzle is how to go by in order to limit cases of lawsuits to ensure business entity continues to thrive?
In this article, we’ll look at some few points that you can implement today to ensure your company will still run smoothly tomorrow.
1. Discern Your Actions and What You Talk About
First of all, as the business owner, the secret to increasing customer flow is through painting a positive image of your business to society. Therefore, it is necessary to avoid making announcements or conducting activities that might ruin the reputation of your firm. By doing so, you will be limiting cases like libelous or potentially defamatory statements, although it shouldn’t restrict you from carrying out activities with unscrupulous individuals.
• Here’s an important note to consider: as a business owner, you should interview attorneys at the first startup to have legal contact standby.
• Ensure your business is secured with liability insurance.
This points also include limiting any possible conflict of interest between employer and employees. Situations like this can influence your integrity as the employer and can lead you to a legal suit case.
2. Invest in competent Attorney
It’s essential for a business to have legal contact of qualified and experienced attorneys. You may require them for legal advice before taking action, or during the process, you can take after you are sued. To avoid messing up, it is advisable to hire an attorney who is common to local laws and customs within the jurisdiction the business operates.
Several sources can assist you in securing a competent attorney. This includes cold pitching and assessing their abilities through simple interviews, seeking professional information from other businesses or through professional organizations to where the company belongs. A Utah intellectual property attorney can help you prepare and protect your business.
3. Put a limit between yourself and your Business
At times people who operate their business as sole proprietorships find themselves at risk of using their assets when their company is sued. The solution to this, or a way to minimize the possibility of the owner’s personal assets being attached in a court of law, is through having an external trust business. A belief is a legal entity, which in most cases files their returns, own property, cash, and a host of other assets.
Incorporating your personal finance and company’s resources in different accounts is a safe way of protecting your funds in case you lose your business on the judgment day.
4. Ensure your Business Assets
It is necessary for all businesses to obtain liability cover in the case of any damage that may fall on your customer within the business premises. Also, if the firm is bigger enough to operate with the board of directors, it makes sense to protect the director and officer liability. The insurance once purchased, protects the director’s personal assets against the company in a giant suit.
Moreover, ensuring your contracts are covered with insurance is another way of minimizing your liabilities. In case of nature damage or any uncontrollable damage that could make it difficult for you to accomplish a given contract, then you should make it clear that you’re not reliable for incomplete work caused by these factors.
5. Securing your files
With advanced use of technology, many businesses are intensively utilizing computers, so giving priority to your computer system safety is crucial. In the event of a natural disaster or extensive technological breakdown, it is necessary to have a backed-up file to refer to. Also, securing alternative work sites is essential for your company’s performance when the force of nature throws you a curveball.
It’s every business owner duty to protect their business and their personal properties in the event of a lawsuit with the above five essential actions. Following those key points will take your business to a higher profit margin with ease.
by: Dennis Hung