As a small business owner, you do not have the protections a large corporation enjoys to safeguard your company against possible litigation.
Here are four liabilities common to California businesses and tips to keep them from becoming an issue for you.
1. Workplace problems
You want to keep your employees happy so, maintaining a good working environment is essential. Offering well-organized workspaces, removing potential hazards and providing workers with any necessary protective equipment are ways to ensure their safety and comfort level. If you have at least five employees, you must carry workers’ compensation insurance.
2. Financial issues
Every business deals with financial liabilities of some kind. These include expenses, loans, payments to suppliers and more. Watching your budget and paying off liabilities promptly will help keep your business afloat and in good financial standing.
3. Errors and omissions
The term “errors and omissions” refers to a mistake you or an employee makes in the professional services your company offers. Errors and Omissions Insurance (E&O) can protect you against claims of negligence, inaccurate advice, misrepresentation and more.
4. Product hazards
Product liabilities result from products that harm or injure someone. You undoubtedly take steps to ensure that your products are safe for the consumer and that the production process itself is safe for your employees. You should also consider product liability insurance. You can tailor coverage to a specific kind of product.
A look ahead
You can protect your company from possible litigation by being aware of business liabilities and taking steps to mitigate them. If you are just starting your business or have concerns about a possible lawsuit, now is a good time to seek legal guidance to better prepare for the unexpected.