Why General Liability Insurance for Business Is a Must

Businesses are more prone into law troubles – both the serious and the frivolous kind. There are many unpredictable things that can occur in the course of running a business. This is why it is important to invest in a good general liability insurance that can cover your business in all such legal troubles without causing you financial loss or unnecessary issues.

You can get a general liability insurance policy for all kinds of businesses – be it a community store, major corporation, or even an online business. When you start a venture, you are in charge of the profit, and your employees depend upon you. This means it is very important for you to have your business properly protected not just for your benefit but also for the people who are counting on you for income to support their families.

A general liability insurance thus safeguards you from unpredictable flaws that may lead to legal proceedings. To ensure timely benefits from your policy, you must keep all insurance papers in place and you should also fully understand your rights under your general liability insurance.

Getting a general liability insurance can also be the legal provision in many states to start your business. So before commencing a new business, it is important for you to check with all the local laws to see that you meet the necessary insurance terms. After this has been done, speak to the insurance agent of a reputed company and get a prolonged general liability insurance policy that can get you good coverage at low premiums for the future.

Below is the list of five common legal risks faced by several businesses:

#1 Legal structure: While setting up a business you need a legal structure that comes in a variety of choices. Each choice of the legal structure varies in terms of taxation, documentation, liability, etc. Moreover, the legal structure of a business also determines how the management and operations decisions are to be made. Which is why it is important to understand the benefits and drawbacks of each legal choice. Also, you should be knowledgeable about the structure you have chosen. Any mistake in the legal structure might lead to legal troubles.

#2 Employment law: Employment law cases involving unjust termination and discrimination claims are on the rise. These laws are broad, complex and change frequently. Thus to save you from getting into unnecessary haggles it is important to know and understand the common employment law risks and have a complete employee manual that is followed conscientiously by management.

#3 Security laws: To increase the capital for your business you may take money from investors, and in return they get some type of claim on the ownership or profits of your company. State and central government agencies closely monitor this process, and those who fail to follow the securities laws will have to pay hefty penalties.

#4 Partnership and Succession risks: Business partnerships are common and so is the stories of many such relationships turning sour. In case of an accident, death, disability or other circumstances are nearly unavoidable in the long run. Therefore, It is important for you to plan ahead of times while getting into a business partnership so as to avoid future risks.

#5 Contract risk: Contracts are fundamental agreements that define the relationships between your company and its partners, customers and suppliers, etc. Whether your company outlines the contract or simply executes them, not knowing, understanding or agreeing with the contract terms can result in disputes or even other financial troubles. Moreover, operating on a “communicative” deal with no written terms can result in unmet expectations and costly lawsuits. The best practice is to get all your agreements done in writing well in advance.

Doing the Right Things at the Wrong Times: The Impact On Your Business

Working with companies in the past, I’ve often witnessed occasions where businesses have been negatively impacted by taking the right action at the wrong moment. Quite simply, in the world of business, timing is everything. If you act at the wrong time, it could have an adverse impact on your company.

Too Many Tasks

Many business owners make the mistake of acting at the wrong time because they are so laden down with tasks and responsibilities. When faced with an overwhelming amount of work, there’s a temptation to seek to ‘get the job done’ as quickly as possible, in order to be able to ‘tick off’ the to-do list.

However, every task that you complete in a certain order will have impact on the direction of your business, and on future results.

Right Actions, Wrong Time: A Cautionary Example

A Business Owner operating within the retail industry invests in a number of new products. This immediately presents him with a series of tasks. He needs to consider marketing, taking photos, creating product descriptions on his site, packaging and much more.

Instead of adopting a measured approach and planning the launch of the new products carefully, he hastily adds them to the site. As a result of not organising proper marketing, the products aren’t seen by many people, and not many sales are made. However, his competitor has seen them; and has also recognised their potential.

Soon, the same competitor has invested in a similar product, has launched it far more effectively and is receiving the majority of the market interest. In contrast, the original business owner now has a stock-room full of product that has lost its fresh appeal, and will have to fight harder to sell it.

What Should You Do?

When faced with a set of tasks, follow these steps: Ask, Plan, then Act.

Ask:

To ensure success in business, it’s important to seek out the help and guidance of others, particularly if they have expertise and experience that can add value to your own business practices. If possible, find a mentor who can work with you to ensure that you’re prepared to take action at the right time and in the correct manner, in order to maximise results for your company.

Plan:

Planning is an integral part of business success. Firstly, identify the results you want to achieve. Then start assessing how you can make that happen. What steps will you need to take to achieve it? What tasks can you delegate to your employees to increase productivity and efficiency? How can you make sure that your actions yield the best possible results?

Act:

Lastly, it’s important to not confuse planning with procrastination. Once you’ve made your plans, it’s vital to act decisively, in order to achieve results.

Doing the right thing in business terms is important. In fact, it’s how your business will develop and experience growth. However, acting hastily, without due planning or guidance, can have serious implications for your success.