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Business Owners: Six Steps to Limit Liability and Reduce Risk

No business owner wants to face a lawsuit. The good news is that you can proactively take steps to lower your liability and reduce your risk. In this blog entry, we’re going to discuss several essential protections that every business should have in place.

Ways To Reduce Liability Risks

Below are a few methods to limit liability claims. The general rule of thumb is to implement common sense and protect employees and visitors – you don’t want to be the next workplace that starts a forest fire or refuses to let people take bathroom breaks

1. Structure Your Business Properly.

How you structure your business is a critical decision. A limited liability corporation, for instance, provides good protection for most small or sole-proprietorship businesses. If your business is an LLC and you are sued, your potential liability will typically only involve business assets, not personal assets.

Meanwhile, corporations provide additional protections that are often important. Speak to a business lawyer and structure your business properly! Decide whether an LLC or corporation is more appropriate for your business.

2. Purchase Insurance To Limit Your Exposure.

Business insurance is available for a wide variety of needs. Here are some of your choices:

Home-Based Business Insurance: Usually, homeowners’ insurance policies won’t cover home-based business losses. Some home policies have riders available, or it may make sense to get a specific policy to cover your business.They help when you have people risking injury as they visit your property or work there.

General Liability Insurance: General liability insurance covers things like accidents, injuries and claims of negligence.

Product Liability Insurance: Product liability insurance protects against losses from lawsuits resulting from a defective product that causes injury or bodily harm.

Professional Liability Insurance: Professional liability insurance protects against suits specific to certain professions, such as losses due to malpractice suits for doctors. In the state of Florida, some medical professionals can waive this insurance if they meet certain conditions.

Commercial Property Insurance: Commercial property insurance covers losses and damage to physical company property.

We can help you think through your options! Figure out which insurances make the most sense for your business.

3. Identify Risks And Implement Procedures To Minimize Them.

It’s impossible to completely eliminate risk in your workplace. But by implementing procedures to minimize risk – ranging from customer slip and falls to the loss of confidential information, depending on the nature of your business – you can reduce their likelihood.

Additionally, if you can demonstrate in court that you’ve taken reasonable steps to ensure safety, you are in a stronger position should a lawsuit occur. It means that to a jury or a judge, you made sure that people were adequately protected.

4. Implement Sanitation Procedures

No one wants to get sick. Least of all, you don’t want someone to get sick or injured on your watch. While sometimes you can’t help flu season coming through, you can prevent controllable outbreaks and illnesses.

If serving food to employees and visitors, ensure that perishables are adequately stored to prevent spoiling. Implement hand sanitizer stations at various checkpoints and refill them regularly. Have a cleaning crew that comes frequently. In the worst case, such as during a pandemic, prepare to shut down temporarily, furlough your employees, and establish work-from-home policies.

5. Put Signs All Over Your Workplace

Always cover your workplace’s interests by putting warning signs for potential risks. If necessary, have staff-members provide verbal reminders to visitors.

Consider Disney World, as one example. The theme park is built into the Central Florida swamps, meaning that wildlife may come through the artificial canals. After a tragedy that led to the death of a child, new warning signs emerged warning people not to swim in the lakes.

6. If It’s In Writing… Make Sure It’s Accurate.

When you’re marketing, it’s tempting to push the limits to make a sale. But stretching the truth and misrepresenting your business, products, and services is an easy way to get sued.What’s worse, you will potentially lose. Lawyers know how to read the fine print and make you honor agreements, so do courts.

Pay attention to any industry regulations and use common sense. Don’t say that your silver solution is edible or will cure diseases. What’s more, make sure you can verify all your claims. It’s also important that your contracts are created by a business lawyer who understands your business – a solid contract provides critical protection against lawsuits.

Improve Your Risk Management With Trembly Law

The Trembly Law Firm wants to protect your personal assets. We have serviced many clients over the years to ensure they have protection and proper legal advice. You deserve to know how to survive any litigation.

Running a business requires risk – there is no getting around it. But it is important to do everything that you can to reduce your risk levels. We can help – please contact us today to learn more!

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