The steps one must take to start up a business can seem a bit overwhelming. There is no wonder, then, that there is an entire industry devoted to helping new business owners get their business up and running. Unfortunately, many books tend to gloss over an important point – namely, how to protect the business from day one. By hiring an attorney, purchasing errors and omissions insurance, and looking in to other forms of coverage, you can give your business a fighting chance.
Long before you ever open the doors of your business, make sure to contact an attorney. These learned individuals can tell you quite a bit about how to keep your business protected. They will also be able to tell you about a number of tips on how to keep your business running effectively. Depending on the specialization, they may be able to give you advice on taxes or how to pay your employees. Some attorneys may even be able to tell you what sort of structure your business should take so that you can keep your profits to yourself. While having an attorney on retainer may represent a significant up-front cost, it will be worth it in the long run.
Another way to protect your business is through errors and omissions insurance. You may have heard of this form of insurance under another name, likely malpractice or liability insurance. In short, this is the kind of insurance that can protect you from your own mistakes. If a litigious customer feels that he or she has been damaged from your service, a lawsuit may not be out of the question. This sort of insurance can protect your business in the long term by taking care of much of the out of pocket expense related to a lawsuit.
Finally, consider forms of insurance that are more general as a way to protect your business. Think for a moment about your place of operation. Is that property covered by some sort of property insurance? If not, make sure to find coverage. Also, make sure that your workers are insured with workers compensation. A small business depends on having a usable location and able bodied workers; it is
imperative that you take care of both. An inexpensive insurance policy should simply be factored into your operating budget; no sane business person can really expect to operate without decent coverage.
If you want to protect your business, it is wise to begin with the help of an attorney. It is also important to purchase an appropriate amount of insurance coverage, making sure that you have paid special attention to errors and omissions insurance. With these simple steps taken care of, you can focus on being competitive. Being safe is the easiest way to get ahead.