How To Protect Your Business From Legal LiabilitySeptember 23, 2022 By Dinesh Parmar
Running a business is a challenging task, more challenging is protecting it. Professional experts, managers and great administrators can keep your business's management part sound and running. Great products and services would aid in booking profits and make sure it stays up to date with the latest trends in the market. But God, forbid if a legal notice knocks down the business doors, then all of the hard work, the priceless efforts and the work of the team can all go down in an instant, and the business might even be on the verge of shutdown in case of prolonged losses.
To avoid such a scenario, it is vital that the business takes the services of a corporate law firm or establish an in-house legal department. We list down several points on how to protect your business and its reputation from legal liability.
Be Careful In Digital Media
In the tech times, we live in, digital media including the much popular social media grabs a chunk of our marketing space. What's important is that this space can be used both personally and professionally. Social media is a great avenue to market a product or service, make it top the charts and use the power of influencers to have better reach.
But a single misstep by our employees or marketing team in the social space, touching on a controversial topic or posting something that is debatable and against societal and national policies, would open Pandora’s box of legal liabilities.
It is going to create problems of sizeable magnitude and a mess that would take a great deal of effort to handle and clear it. That’s why the number one principle when it comes to digital media is to watch what you utter or write in the digital domain.
Get A Liability Cover
This is the most important thing to have in case of a legal issue. From customer mishaps in building premises, unforeseen circumstances, and acts of nature to the case of not living up to contractual terms there can be a host of issues that might put the business in jeopardy. It is extremely important that liability protection is defined and present in such cases, add on covers like errors and omission insurance and umbrella coverage are well suited for these scenarios.
Liability protection offers a comprehensive solution to the untoward instances that might happen in future for issues beyond your control, they also help limit the legal liability thereby preventing the whole business from getting affected.
Safeguard Your Data
This one goes without saying, in this digital age, data is the new oil, it is much more crucial and important than even money. Every company wants business and profits, and in this cutthroat competition, it is of paramount importance to protect user and companies data. Rival companies, dishonest employees, virus, malware or ransomware attack are some of the leading causes of data breaches and leakage. This can run the entire business downhill and invite several lawsuits for breach of contracts, agreements violations and risking users' confidential data.
It can also burn a big hole in companies' finances fighting all these lawsuits and paying compensations in needful cases. The only way to safeguard such vital info is to back up the data, keep it on a remote server somewhere safe, have regular third-party security audits, the latest antivirus and software installed and implement strict workplace policies for misuse of data by employees via pen drives, etc. This way there is a limited legal liability in case there is a violation that can be fixed promptly.
Establish & Implement Workplace Regulations
Why look outside, when you can have a problem inside? That’s right, having a cordial, safe, secure and friendly work environment is just as important as complying with legal laws. Women's safety, workplace ethics, code of conduct, anti-harassment policies, and labour codes form a core part of the business environment. Any untoward incident that happens in any of the above categories is bound to make the business appear in poor light, its shares tumbling down and revenues falling.
To prevent these situations from conforming to the latest laws, establishing proper grievance mechanisms, organisational charters, and workplace rules & regulations go a long way in setting the tone and sending a good message. An organisation that respects its employees and protects their rights and privacy has improved loyalty, employee retention and motivation. Resulting in a passionate workforce that is ready to set new benchmarks in the industry.
Hire A Legal Aid
No matter how safe we try to manage the business ourselves, there is always a minute chance that it might run into trouble. That's why taking the services of a law firm or legal counsel for small businesses is necessary. They know the loopholes in the growth story and have ample experience and expertise to deal with such situations.
Legal counsel for startups is much needed because they are at a very early stage of business in the market and have little or no experience with the legal troubles. The services of a legal counsel also help in protecting the business from future losses by helping frame up-to-date policies and regulations and complying with the legal requirements of the operating country.
Some Final Thoughts:
Legal Liability is no joke when it comes to business operations, a single lawsuit is able to cause chaos in the entire operational setup and make businesses suffer huge losses. Legal counsel for a startup is essential to prevent them from falling into early traps. The best advice would be though to hire a law firm on retainer that helps in adopting global best practices when it comes to framing and implementing policies and creating a wonderful work environment. That way the business would be achieving sizeable growth, booking profits and being a worthy reputed brand in the market in no time while being safe from legal issues.