How Small Businesses Can Minimise Legal Risks

How Small Businesses Can Minimise Legal Risks

The last thing your small business wants is a litigation case being directed against you.

There are a number of laws that businesses have to be cautious not to infringe upon, including:

• Employment law
• Intellectual property law
• Environmental law

Each of these laws requires careful research of each. Along with those, I have created this list of all necessary precautions one must take to give your business the best shot at a clean slate.

Product Liability

This is the most obvious one. If a product or service given harms a client in any way and they present sufficient evidence in a court of law, that client can fire a lawsuit against the company, destroying the finances and reputation of that business.

Contract Risks

Every time you sign off on a contract, every single party needs to have read and understood every word of it, even the small print. Misunderstanding or even ignoring a contract can result in litigation, hence making it important to review contracts in a group to ensure optimal understanding.

Adhere to Corporate Formalities

Documentation! Keep a neat record of all contracts, meeting notes, transactions and the like. Ensure you have a sophisticated following of corporate procedures including separate bank accounts and conducting regular business meetings.

Business Insurance

Even the most legally sound businesses can get caught up in the crossfire. If that happens, insurance will be your saving grace.

If you have any questions about risk minimisation, please do not hesitate to contact me. I am here to help.