A successful business requires a vigilant watch for trouble on the horizon. Watching potential problems can help business owners avoid lawsuits that could damage their reputation, hurt their future business, and cost thousands or more in settlements and litigation expenses. Businesses work hard to avoid these lawsuits; here are five tips to help you protect your own company:
Read agreements before signing
No matter what kind of legally-binding document you intend to sign, make sure you read everything. If possible, have an experienced business law attorney review the paperwork to ensure that you are not committing yourself to something that may cause you to experience severe consequences later on.
Put it in writing
Any kind of agreement or partnership detail needs to be in writing. Without signed documentation explicitly detailing the nature of any business matter, other parties may try to back out of their responsibilities and leave you with more problems than you may have originally agreed to. Make notes on any changes to your contracts and have both parties sign a written document for acknowledging any updates.
Get insurance for your company
There are some problems that no one can see coming. For property damage, employee lawsuits, and anything else you may not be ready for, insurance can act as the safety net you need to protect your wellbeing. Without insurance, the cost of a lawsuit can devastate a business. Make sure that all current policies are correct and appropriate for your organization and always investigate your options with multiple insurance brokers.
Reduce contractual liability
The more issues your business is responsible for, the more challenging things can be if you need to become accountable for those liabilities. When drafting contracts or other agreements, try to anticipate any problems that may arise and create an arrangement that excuses your company from those liabilities.
Regularly train your staff, not just managers
If your staff is not fully capable of doing their job, accidents may occur. Workplace accidents can be a significant money sink for a business, especially when they are avoidable. Ensure that your staff is current on any safety policies, user instructions, and anything else they should know to perform their duties.
Foresight makes a difference
When business owners actively lookout for serious problems their business may experience, it allows them to prepare for them or take action to avoid them altogether. Make sure you are doing what you can to protect your business and its future.
To learn more about how Hart Kienle Pentecost can proactively protect your business, contact one of our Partners today.