Yesterday we looked at Personal Injury Claims so I thought that today we would look at “Business Liability”. In a personal injury claim you could be suing either an individual or a company for injuries you sustained due to their negligence. But what if you are on the other side? What if one of your employees did something stupid like goofing around with a forklift and injured someone? In that case, hopefully, your business would have “Liability Insurance” and that is what we will look at today. ~Tim McMahon, editor
How To Protect Your Business From Liability
Protecting the business is one of the top priorities for any business owner, regardless of the industry that they operate within. Every day business owners work tirelessly to reduce the risk of potential setbacks to the company, to ensure that the business can continue to run smoothly.
In recent years, there has been a steady rise in the total of lawsuits against small businesses. As this number is only expected to rise, it means that the chances of a potentially devastating lawsuit for your business is not going to decrease anytime soon. Understandably, business owners are looking for ways to protect themselves and their company from liability.
Ensure You Protect Your Files
In this day and age, technology plays a significant role in the operation of countless businesses. Since most work is conducted solely on computers, the recent spate of cybercrime and ransomware emphasizes the importance of safety for your computer system. This could be ensuring that the antivirus on all systems is updated regularly and that any other types of security are installed into all systems as well. One key factor is to educate your employees on not opening suspicious-looking emails. Here is a list of “Best Practices” from Nakivo.
- Check e-mail addresses
- Do not open attachments
- Constantly update your system
- Do not install any third-party software
- Regularly scan your infrastructure
- Create honeypots
- Educate your employees
- Restrict access to critical systems and applications
- Follow the 3-2-1 backup rule
- Consider cyber-insurance
- Notify authorities
Have The Right Insurance Coverage
Regardless of the type of business you conduct, it is important to ensure that you obtain insurance to protect your company. For example, you would want to obtain general liability insurance to cover your business from any claims made by a member of the public against your company. The reason for these claims could range from property damage or illness caused by your business’ work or the product you have produced or sold, to them sustaining a bodily injury.
However, general liability is often confused with professional liability insurance. The difference between what is covered under general liability vs professional liability insurance is that professional liability insurance is tailored towards the claims made by clients over professional mistakes or negligence.
Be Conscious Of What You Say
How your business is presented to the public is key to your firm’s success. As such, both yourself and all employees need to be cautious about what they say publicly regarding the business that could be deemed questionable. For instance, if they were to say a slanderous statement about the business. In addition to this, it is important to not associate your company with an individual or company known for conducting an unethical business practice. Although this may not seem like much damage could come from working with a business that conducts unethical practice, however, if your company name is linked to such a firm, your business will face repercussions from the fallout.
Do Not Forget The Small Things
Whilst the previous ways focused more on the business overall, it is important to not forget the small things within the office such as warning signs for wet floors, hot water, wet paint, or any other potential hazards. Implementing small warnings such as these reflect that you are a responsible business owner, taking into consideration the safety of everyone involved in the business.
Cover All Bases
At the end of the day, as a business owner, you are responsible for protecting your company and all its assets in the case a lawsuit is filed against your firm. Ensuring that you have covered all bases, such as protecting your files, having the right insurance, and even being cautious about what you are saying, will all help to reduce the risk of facing legal action against your business. However, if you were to face any legal action, your company would be in a stronger position to come out of it unscathed with the right protection already in place.
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