How to Shield Your Business from Liability

Owning and operating your own business comes with many financial risks, both from a marketing point and a liability standpoint. More often than not, liability is the number-one worry for a new business owner as it is crucial to be protected from any potential legal issues. The following list includes some of the best ways you can shield your business from common liabilities.

Hire a Lawyer

Owning your own business comes with a plethora of legal obstacles. Thus, according to FindLaw, a business owner should always first make sure that he or she has a lawyer on retainer for common legal issues, such as setting up your tax documents, and more serious issues, such as worker or customer-related accidents. A lawyer can provide you with immediate counseling after an unfortunate event and may even save you from paying thousands of dollars in legal fees.

Form an LLC

One of the most common routes new business owners take is in applying for an LLC or limited liability corporation. According to Northwest Registered Agent, an LLC ensures your protection in the event that your business is sued. In addition, even if you lose your business, and someone comes after your company assets, your personal assets such as your home are protected under this title.

Vehicle Liability

Most companies require the use of a company car. Most will require these vehicles to be used only for company purposes, but that is not enough to prevent you from being legally liable in the case of an accident. In order to decrease liability, owners should make sure that the vehicle and the driver are both insured. Newer rideshare companies tend to be a little more difficult to ensure total protection from liability. According to Abels & Annes, many rideshare companies risk accidents by not thoroughly screening potential drivers. These types of businesses must be proactive in their approaches to ensure protection; this would include the proper screening of drivers and the purchasing of liability insurance.

Protect Your Information

Thieves are moving more and more away from simply breaking into a business to steal money. They understand that there is more value and a higher success rate in the theft of customers’ data. Business owners must take this threat very seriously by implementing a series of cybersecurity measures. This means changing passwords constantly, making sure that your connection is well-protected and that alerts are being taken seriously.

Though protecting your business from liability is one of the hardest things to do, it can often be the decider about whether your business will survive in the short or the long term. Adhere to these tips, and become proactive in the ways you shield your business from these risks.

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03 Sep 2019

By Julie Fisher