You’ve spent years building up your small business, and you’ve earned the right to enjoy the fruits of your labor. Unfortunately, that can all be in jeopardy if you find yourself hit with a lawsuit. While it’s understandable and necessary for people to have legal recourse for legitimate issues, far too many people try to play the system or chase exorbitant dollar amounts. Here are some ways you can protect yourself.
Let’s start with a lesser-known protection: dishonesty bonds. In short, dishonesty bonds protect your business from malicious or illegal acts done in your company’s name by an employee, or even by a third-party contractor. If you have a “rogue agent” taking unauthorized action, dishonesty bonds can protect you.
It’s critical to have your book-keeping in order. While software is available to help you perform actions like payroll and taxes, it’s worth the money to have a C.P.A., or Certified Public Accountant, handle these transactions. The main reason is that if there is a discrepancy, they can “show their work” and either dispute it or prove that it was a clerical error on their behalf, not an attempt to perform a fraudulent act by you.
Finally, and most importantly, carry as much insurance as you can. If have a physical office, property insurance will help if there is damage. Professional liability insurance covers accidents on site. Obviously, if you use vehicles, car insurance is critical. You need worker’s compensation insurance to cover claims made by employees. Product liability insurance can protect you if an item you sell causes an accident. Lastly, business interruption insurance will help you in times of natural disasters when you can’t be open. The larger dollar amount of coverage you can afford, the better.
Don’t risk losing everything you’ve worked so hard to create. Take these steps to take some of the worry out of running your business.