5 Business Tips for Minimizing Legal Liability and Protecting Your Business
Operating a business carries risk. Unfortunately, there is just no way around that reality. Especially for small business owners, a legal claim can mean the end to your company’s viability. However, with proper planning, you can protect your business and your personal assets.
To help you protect your hard-earned investment, here are five tips for minimizing your legal liability.
Don’t Jeopardize Your Liability Coverage
Many small business owners don’t realize that there are behaviors and actions that may lead to being dropped by your insurance company. Once that happens, it can be very challenging to get coverage with another firm. Be sure to talk with your insurance agent about your company’s risks, and also follow these tips:
- Don’t use company funds for personal expenses.
- Never intentionally harm employees, customers, or members of your community.
- Operate with integrity, and don’t offer false claims or guarantees.
- Always comply with corporate regulations.
- List yourself as the proper business entity.
Protect Against Personal Injury
Don’t assume you have personal injury coverage just because you have liability coverage. If a customer, vendor, or passerby were to get injured on your property, you can be held responsible for his or her medical expenses and other fees. Ask about the details of your liability insurance and whether it covers personal injury.
Ensure Your Employees Are Covered In Their Cars
You may not know it, but most standard business auto insurance policies do not cover employees who are driving their own cars. If an employee is driving their personal vehicle to conduct work business and causes an accident, you may be held liable for the damages. It’s essential to understand your coverage and your risks.
Establish Rules About Driving
Generally speaking, employees want to be good workers for you. It should be clear that while you appreciate their prompt responses to emails, texts, and phone calls, none of these things should happen while they are driving. Having a company policy about texting and driving while on the job can help to protect your company and the safety of your employees.
Consult a Business Law Attorney
When establishing your business, it’s essential to consult with a business law attorney to be sure you are addressing all of your risks and setting yourself up for success. Then, you should retain them to review your operations, documentation, and business model whenever a major change happens or every 2-3 years.
As a Certified Business Coach, I work hard to ensure my clients have the information they need to establish the most successful business possible. Want more business tips? Check out my blog.
About the Author
Following three decades of experience growing businesses and leading sales teams, Matt Job brings his established expertise to his certified business coaching practice. Supported by his proven track record, Matt thrives on offering results-driven Business Coaching, Organizational Training, and Team Development programs for organizations of all sizes.
By defining goals and developing strategies that are consistent with an organization’s values, Matt motivates clients to achieve real, measurable results. From one-on-one business coaching to large-scale corporate trainings, Matt is ready to tailor a program specifically for your business’s unique needs.