Business protection should always be at the forefront of your mind, no matter where you’re at in the process of launching or running your company. Start as early as you can laying the groundwork for it.
Doing so will keep you from getting a raw deal when you inevitably end up in court. In the following article, we’ll be discussing the five main things you should be doing to protect your business in the face of an increasingly litigious society. Let’s begin!
1. Be Transparent
The first thing you should do to protect your business is to obey all the rules of transparency that you have set in place. Let people see how the sausage is being made, so to speak, as long as it doesn’t put you at a competitive (and needless) disadvantage.
If yours is a publicly run company, you’ll have certain legal requirements that need to be met for reporting to shareholders. There also may be regulatory requirements depending on your industry. Do not engage in questionable behaviors, and stick to what is required.
2. Get Agreements in Writing
One of the biggest reasons for getting sued is leaving yourself unprotected with customer agreements. You can verbalize an understanding, but that understanding isn’t worth much when you don’t have a signature and notarization locking it into place.
3. Respect the Extent of Your Agreements
Many a business lawsuit could be avoided if people would just stick to the scope of their agreements. Customers are more likely to pursue a lawsuit if they feel you’ve overstepped your boundaries, particularly if you try to charge them for it.
Detail the scope in writing. That’s what your agreement (No. 2) is for. Then, execute all your benchmarks to the best of your abilities.
4. Be Aware of Employer Obligations
Some legal issues in businesses arise from the inside. Employees do not feel you are treating them fairly, and they may pursue an action for OSHA violations as a result.
Know your obligations. Stick to them. Deal with your employees fairly in all things, and you’ll greatly reduce the likelihood of a lawsuit.
If you do find yourself the subject of a lawsuit, consult with a personal injury attorney who has experience on both sides of the issue. They’ll be able to give you a clear idea of the extent of your liabilities.
5. Protect Your Assets
The last note we’d like to hit regarding company protection is that you must protect your assets. Do you have any patents or trademarks that need to be defended? Do so, or you could risk losing them.
Yes, sometimes business protection is about going on the offensive rather than waiting for the fight to come to you. Be willing to engage as needed.
Business Protection Should Not Be Overlooked
Taking the time to learn about business protection is important. However, you should also take the necessary steps to safeguard it now before the storm hits.
Best of luck as you deal with the challenges ahead. For more legal tips and advice, check out some of our additional posts!