If you’re the owner of a small business, you’ll want to do everything you can to ensure it succeeds. America is made up of small businesses of all kinds, many that go on to thrive while others don’t survive. Part of having a successful business is knowing which legal strategies you should choose to minimize your liability for common risks.
For specific questions, contact Angel Reyes & Associates. The following strategies will help you protect your small business and maximize your potential to thrive.
Get the Right Insurance Coverage in Place
The right insurance coverage can make all the difference, though it will depend on the nature of your small business as to which one is the best option. If your small business operates out of your home, your homeowners’ insurance policy likely won’t cover any losses related to your company. You can first check to see if your policy allows for riders or get a separate policy that covers you if a client or employee is injured on the premises.
If you have a storefront or office, general liability insurance is essential. This type of insurance can cover accidents and injuries, as well as protect you from being blamed for negligence. If you have created a product, you should get product liability insurance to protect you from losses through lawsuits charging defective products.
Small businesses that have drivers or operate several vehicles should also review the best insurance coverage for commercial vehicles. These are just a few examples of types of insurance you can choose to help protect your small business. You should speak with an attorney to learn more about which types of insurance may be most beneficial in your situation.
Know Your Risks and Take Steps to Minimize Them
There are risks in every kind of industry, and only through implementing the right procedures can you minimize their occurrence. Showing that you have taken reasonable steps to keep everyone safe on your premises can also protect you if you face a lawsuit down the road.
Every small business is different, though here are some ways you can reduce the risks in your small business.
Post Proper Signage
Property owners should always be inspecting and maintaining their small businesses. When you find something that needs to be repaired to prevent danger until it can be properly fixed, you should make sure clear and visible signage is placed. Even cleaning tasks can put your customers at risk, which is why it is imperative to use signs that announce wet floors to keep everyone safe.
Based on the specific circumstances, consider having signs posted about safety protocols, directions, potential hazards, or access restrictions from an area under repair.
Get Rid of Clutter
A small business is much more likely to have less room to move about. You should maximize your space and rid it of any clutter that poses a danger to your customers and employees.
Maintain the Property
Your small business needs to be maintained to avoid any legal issues. Make it part of your routine to evaluate your property and make repairs promptly. Review areas of concern such as stairwells, parking lots, sidewalks and walkways, lighting, and other common dangers that can lead to injuries.
Understand Your Role in Compliance
Another reason to speak with an attorney is to ensure that your small business is compliant in every area. You can’t claim ignorance of these laws to protect you should a lawsuit arise. Review the regulations for your particular industry to ensure you’re following everything to the letter to minimize your liability risks.
Keep It Clean
Ever since the pandemic, greater focus has been put on business environments. Whether you operate a small office or a small cafe, you need to do your part to protect guests and employees alike from suffering preventable outbreaks and illnesses.
Food safety should be a top concern for any small business that works with food. Make sure that perishable foods are stored in proper containers at the correct temperature to keep them from spoiling. Review everything carefully to stay compliant and avoid citations from the health department.
Additionally, you should have easy access to hand sanitizer and hand-washing stations. Hiring a cleaning crew can help keep your premises clean which can prevent the spread of bacteria and other germs for the best practices in your business.
Be Honest and Accurate with What You Provide
When you have a product or service you provide through your small business, make sure you’re telling the truth about your offerings. You must be able to verify all claims that you make. Misrepresentation and bending the truth are the easiest ways to wind up on the other end of a lawsuit.
Ideally, it’s best to get all of your ducks in a row before launching your small business. If you haven’t yet already, make sure you have professional contracts in place and have an attorney review your product marketing, instructions for use, and everything else. This will help you identify any risks you may have missed and take the steps to correct them before a problem can arise.
Talk to an Attorney About Your Small Business
Opening up your small business may be a dream come true, though it can quickly turn into a nightmare if you don’t have essential legal strategies in place to minimize your liability risks. These risks will vary depending on the type of business you operate, and it’s wise to discuss things with a lawyer to stay ahead of them.
You may know that having a wet floor in your store without a sign to warn visitors can cause trouble, though you may miss other dangers or leave your business vulnerable in another way. From slip and fall accidents to being accused of making false product claims, a lot can go wrong. Stay ahead of the potential problems that business owners of large and small companies alike face by knowing what to look for and setting up the right protections.