This post is contributed by Jason Dirkham.
When it comes to your business, you need to get a lot of things right, or else it’s going to be costly. When you run a small business, especially a young one, your business’s life could easily and quickly die- not something that anyone wants, honestly. Every business dreads dealing with an accident; whether it’s the owner, a customer, an employee, or a random passerby, it all can happen.
So, one question you need to ask yourself as a business owner would be, “What legal measures can I take to protect myself and my business in the event of an accident?” Most business owners won’t even look into this until it’s too late. Whether you’re having to deal with a personal injury lawyer, fines, being sued, workers comp, or just anything and everything, you need to know exactly what you need to do. So, here’s everything you need to know when it comes to legal measures for protecting your business in case there’s an accident.
Invest in Comprehensive Insurance Coverage
No matter how big or how small your business is, this is one of the first things you’re going to need. In fact, you can think of this as the first line of defense for any business: a robust insurance policy. So, you need to ensure your business is adequately covered with liability insurance, property insurance, and any other relevant coverage based on the nature of your operations.
In the event of an accident, insurance can mitigate financial risks and cover legal expenses. Plus, this type of coverage protects your business from claims related to professional negligence, errors, or omissions. In general, having specialized insurance can be pretty instrumental in covering legal costs associated with accidents.
There Needs to Be Strict Safety Protocols
So, what are the protocols that you have in your business? Nearly every business and every industry needs to have this. If you’re working alone with literally no one else, then the protocols wouldn’t be as strict (but you still technically need one, too). So, you need to think of it this way: proactively preventing accidents is as important as preparing for them. Whenever you have a team or even a space where clients, suppliers, or contractors visit, there needs to be safety.
So, you need to establish and enforce stringent safety protocols within your business. While yes it’s a lot of work, this does mean that you need to conduct regular training sessions for employees, create safety guidelines, and ensure that all relevant industry standards and regulations are adhered to. Not only does this reduce the likelihood of accidents, but it also demonstrates your commitment to a safe working environment.
How Often is there Maintenance?
If your business involves the use of equipment or machinery, regular maintenance and updates are essential. There are more than enough stories out there of businesses using faulty equipment only for it to hurt someone. So, you’ll need to keep meticulous records of equipment inspections, repairs, and upgrades to demonstrate your commitment to safety.
Document Safety Training and Compliance
While it’s a lot of paperwork, in the end, it’s definitely worth it. You’ll need to maintain meticulous records of employee training sessions and safety compliance. Why do all of this work? Well, this documentation can serve as crucial evidence that your business has taken the necessary steps to ensure a safe working environment. In the event of an accident, these records demonstrate a commitment to employee well-being and legal compliance.
Make Sure You’re Compliant
One of the biggest legal necessities you’re going to face would be compliance; you have absolutely no choice and will need to do this. Never think that you’re absolutely easily bypassing this because once you’re caught, you’re going to deal with a lot of consequences.
You’ll need to regularly audit your business operations to ensure compliance with safety and environmental regulations. It really doesn’t matter what industry you’re in or how small your business is; you’ll still need to do this. Failure to adhere to these standards can result in legal liabilities in the event of an accident- which could potentially ruin your business.
Look into Alternate Dispute Resolution
It’s best to look into incorporating alternative dispute resolution practices into your contracts and agreements. ADR methods, such as mediation or arbitration, can provide a more efficient and cost-effective means of resolving disputes arising from accidents. This is something that every small business owner needs to know about. If you have this type of clause, it’s going to help demonstrate a commitment to resolving issues without resorting to lengthy and costly litigation.
