Business owners, do you know what increases your small business liability exposure?
Any small business owner will know that running a business is a juggling act. It’s about balance and consistency, as well as implementing the right protection. While no two businesses are created equally, many companies forget to assess their individual threats when purchasing insurance. To prevent your small business liability exposure from hiking up unnecessarily, avoid these common risks.
In an ideal world, businesses would follow regulations to a ‘t.’ However, if you’re business is just starting, you may not be aware of important compliance issues or you may be tempted to cut corners (though it’s never advised!) However, if you go down this route, it could spell out big financial and legal trouble for your business. Always research regulations thoroughly and comply accordingly. Check with local organizations, professional societies, and state and government resources to be sure that you’re in compliance.
Overlooking client complaints.
When a disgruntled client starts to voice their opinion about your company, you may be tempted not to engage. Letting a complaint go unaddressed, however, can escalate the conflict unnecessarily. Aim to address complaints immediately in a polite and rational voice, and keep an open mind about their concerns. Mistakes help us to grow, so document complaints accordingly and determine if any procedure changes need to be made to avoid issues in the future.
Hiring and firing without learning the rules.
When you’re starting out, it can be hard enough to find good help, but even so, you must play by the rules by taking on new staff members. Before hiring and firing, always educate yourself about the rules, regulations, and seek advice before the first employee is hired. Remember that your business is responsible for complying with federal Equal Employment Opportunity laws, which aim to abolish workplace harassment and discrimination. Failure to comply with these laws typically result in large fines and lawsuits.
Those small businesses that lower their liability exposure and protect themselves often have the greatest chance of business success! Find out more information on how to safeguard your business with liability insurance by contacting Nahai Insurance Services today.