Watch Your Actions
In order to protect your business image, make sure that you and your employees should not issue public announcements. You should also avoid conducting questionable business activities such as making slanderous statements or doing business with individuals who have earned themselves a bad reputation. Another thing is to limit your conflicts of interest as this could put you in legal hot water.
Get a Competent Lawyer
All businesses need a ready legal contact the moment they are put up. As the owner of your business, you know that you will need an attorney to advise you on what to do or how to react after you have been sued. The best thing to do is to hire an attorney who knows the local laws and customs in your area well. Moreover, if you are dealing with challenges from the IRS, then what you need is a tax attorney.
Don't Combine Privacy and Business
When you are doing sole proprietorships, the problem is that your own individual assets such as your home and car might get attacked in a court of law. The solution is to limit the ways in which your own personal assets can become the target of a lawsuit. Get a trust to own the business.
As a legal entity, the trust files in separate tax return and can own property, securities and business. Moreover, the act of incorporating can protect your personal assets from a lawsuit that attacks your business.
Have Your Files Protected
Employ backups for all your files. Most businesses nowadays work with computers. Thus, in case there is a huge technological breakdown, then you have backed up files ready. This means you should regularly do back ups daily, weekly and monthly. One way you can do this is by storing these files in paper in a fireproof safe for obvious reasons. What about if there's a hurricane? Then you should make sure your building is protected from these natural disasters.
Get Business Owners Package Insurance
It is a fact that whatever happens, you cannot totally prevent natural or man-made disasters from harming your business. The only thing that can help you with this is a business owners package insurance policy.
Usually this type of insurance covers property claims, income loss, equipment breakdown, professional liability claims, fire legal liability claims, products and completed operations claims and premises liability claims. Whether your business is an auto repair shop or a hotel, you will definitely need this protection.
Some Final Words
All business owners need to protect their companies and personal assets especially when confronted with a lawsuit. If you do these five recommended actions, then you're in for a future that is hassle-free. In fact, what you can do to secure your business is to add premiums and coverages to the insurance policy that you have now. This will allow you to live in peace in the coming months and years.
At Bond Pro Insurance Brokers, we always do our best to ensure that our clients receive adequate protection with business insurance policies that are both comprehensive and affordable. If you have inquiries, give us a ring at (636) 220-6377 or Click Here if you want a free quote.