Top 5 Ways To Limit Liability
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1) Watch What You Say and Do
- Quality Practices [extremely important in Compliance Industries]
- Are you following your QAP and Standard Operating Procedures?
- Are you Self-Evaluating?
- Annual Performance Audits
- Thinking about Expanding?
- Consider the difference between employees vs independent contractors
2) Hire a competent attorney
- Attorney familiar with local laws and customs in the area in which the business operates
- Expertise in a particular field
- A tax attorney
- If your company is anticipating legal challenges from the Internal Revenue Service (IRS) or taxation state department
- If you’re an LLC
- Corporation with partners
3) Separate yourself from your business
- Sole Proprietorships are a quick and easy way to start a business, but…
- It provides little protection for the company or its owner.
- If this type of company is sued, the owner’s individual assets (such as their cars or home) are fairly easy to attack or attach in a court of law.
4) Protect your…Reputation, & Internet Security
- Protect Your Reputation
- Watch review sites like Yelp, Angie’s List, etc. for bogus or negative reviews and respond promptly, legally, and professionally
- Limit what you say on social media
- Limit behavior that lends a negative perception or misperception
- Drinking with your logowear
- Political or social opinions that offend
- Protect Your Internet Security
- Don’t open copy [‘cc’] large lists in your emails
- Don’t open emails with large ‘cc’ lists
- Change your password and encrypt your documents
- Use a good anti-virus that is updated frequently, without charge.
- Purchase a good Maintenance Plan to prevent lazy practices
- AppleCare for Mac
- PC Matic, etc. for PC
5) Insure yourself & your company
- Anyone can be sued at any time for any reason. You are not immune!
- Various types of insurance coverage should be considered as well as using a competent contract attorney to build legal language into your contracts as a first line of defense.
- Does your insurance cover 1M in legal representation regardless of ‘fault’?
- Don’t assume an endorsement on your primary insurance is adequate.
- i.e. Home Inspection policies with radon coverage, Radon Measurement & Mitigation on same policy.