How to Minimize Liability for Your Business

Facing a lawsuit is stressful, and the experience can have staggering effects on the future of the company. Facing legal problems is expensive, especially since it always pulls your attention away from the daily responsibilities and activities that matter most to help your company succeed.

Even though we live in a world where lawsuits seem to be commonplace, you can follow a few proactive steps to reduce your liability. These actions not only protect your company; they also help to protect yourself and your employees. Here are a few necessary steps to minimize liability:

Have an Updated Employee Handbook

Current policies and practices should be communicated to employees, and the best solution is to have a printed employee handbook for reference. This document should be updated annually and include policies regarding anti-discrimination and anti-retaliation. Every employee should be provided a copy of this handbook when hired. New copies of the handbook need to distributed each year when the policies are updated.

Training: New Hires and Ongoing Employees

The most effective way to create a safe work environment is by ensuring that training is provided to all employees. Not only do new hires need to learn the policies, but managers and ongoing employees need regular training to keep the information fresh. Pair the distribution of the employee handbook with annual training to make sure that everyone understands the policies and procedures.

Purchase Insurance Coverage

Insurance is essential in case you face an unexpected situation in the future. The hope is that you don’t need to use your insurance coverage. But, you will be happy to have the policy when it is needed. Talk to an insurance agent about general liability insurance, which covers things like injuries or accidents. It is also a good idea to have product liability insurance and professional liability insurance, depending on your industry. Don’t overlook the benefits of employment practices liability insurance, which covers liability for employment claims and legal fees if needed.

Consult with an HR Expert

Any time questions come up about hiring or employee management, it is essential that you can lean on the experience that comes from an HR professional. This advice can be invaluable to help you avoid common mistakes that could hurt your company.

If you need HR advice for your company, then Cahue Enterprises is here to assist. Call any time to learn about the services that we provide: (951) 760-2870

*Disclaimer: Any information provided is for informational purposes only, and should not be construed as legal advice regarding any subject matter. Cahue Enterprises HR Consulting, Inc. is not assuming the position of legal advisor but instead aims to educate on human resources matters and compliance.