What You Need to Know About Liability When Starting a Business
Liability when starting a business. When you’re in the process of starting a business, you probably have a million questions. And you also probably have a million things to do. But recognize that taking the time to adequately cover your liability will pay off in the event that you have a lawsuit filed against you.
Insurance Can Protect You
Getting the right insurance can help minimize your liability in the case of different accidents. Make sure that you are covering all your bases from having building insurance to having insurance in cases of malpractice.
Having the right type of insurance with enough coverage to adequately cover your risk will save you a lot of money in the event that you ever do find yourself in a difficult situation relating to lability.
Due Diligence is Necessary
In addition to getting the right insurance coverage, do your best to prevent injuries or problems from occurring with your products or on your premises. Make sure you take the time to assess your place of work for any potential hazards—is there adequate lighting illuminating the outdoor stairs at night? Is the parking lot full of potholes? Does the smoke alarm work?
Taking these measures will protect you and your employees but it’s also the law. OSHA mandates that all employers provide a safe workplace environment. Providing this safe workplace environment also extends to the way you facilitate workplace interaction. While you can’t be held liable for employees having positive work experiences or not, you could get involved in lawsuits if there is workplace harassment.
Create a Separate Legal Entity
In addition to doing all you can to have good insurance and to take good preventative measures, one of the most important steps of limiting your liability involves building your business under the right legal settings.
You probably know that simply building a website and starting a business won’t provide you the legal protection that you need. But you should do your research to figure out if you should establish your business as an LLC or as another form of legal entity.
Starting a business usually means taking an idea or a dream you’ve had for a while and making it a reality. And while starting a business really is exciting, recognize that your business is relatively fragile at the beginning. Doing your best to limit your liability could really save you in cases that could cost you big if you are held liable. We hope you found these steps useful in identifying liability when starting a business.
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