Streetsmart insurance Blog
It’s the responsibility of business owners to both clients and employees that to make sure the business can continue to run smoothly even in the event of a totally unforeseen circumstance. Limit the possibility of lawsuits to ensure a hassle-free business venture with these 5 tips:
1. Contract a Proficient Lawyer
It's wise to first consult your lawyer about how you should act when faced with a lawsuit. Make sure to hire a lawyer who is familiar with the laws of your business background. You can find a good attorney through professional reference and from professional organizations.
2. Insure Yourself
Liability insurance should be a staple for all businesses. It’s a good idea to consider getting errors and omissions coverage, in case a client accuses the owner of making an error, or not following a contract.
For large businesses with an official board of directors, get a directors and officers liability (D&O) insurance. The directors’ personal assets will be protected from larger suits against the company with this insurance.
Consult your lawyer as you can also cover yourself against liability by making sure you are protected in your contract.
3. Be Mindful of Your Words and Actions
Public announcements with questionable statements should be avoided. As well as doing business with shady groups and individuals. Stay out of situations where a conflict of interest is possible. As these can easily damage your integrity as a business owner and could put you in a tight situation.
4. Keep Your Files Safe
Most businesses nowadays work with a computer. As your business can be at risk if your computer gets infected with a virus, protect your files with an updated antivirus along with other security software that can help you in case your files get lost or stolen. It’s advisable to have multiple backup files and additional safeties such as portable generators and alternative work sites should the very worst happen to your materials and supplies.
5. Separate Yourself from Your Business
Avoid losing your personal assets from a lawsuit by having a trust own the business. If a business owned by a trust is sued, the only assets that can be attacked are those in that are in the trust itself.
You can also make your personal wealth safe with incorporating. The disadvantage of this is that you have to keep up with the additional laws, reports and taxes that the government will require, but you can be sure that your personal assets are safe even if you lose your business in court.
Making sure that your business is free from lawsuit risks is not a simple task. At StreetSmart Insurance, we aim to provide comprehensive insurance policies that makes your life easier. You can get more information about our products and services by calling our agency at (732) 462-8343. Get your free quote today.