When you decide to start a new business, there are a lot of important things to think about. Naturally, you will be focusing on your business plan, employee recruitment, developing a marketing strategy, and finding customers. However, you will also need to take all the necessary steps to keep yourself safe from legal issues as you proceed with your startup. Avoid lawsuits and property damage and theft, and protect your company’s reputation by making smart decisions from the get-go.
This involves being properly insured, protecting your workers’ rights, complying with health and safety regulations, and protecting your property and information. We will give some smart tips for protecting your rights when starting a business.
Workers’ Comp Insurance
Workers’ compensation insurance, often shortened to “workers’ comp”, is a type of insurance that provides wage replacement and medical benefits to any worker injured during the course of their employment. The benefit for business owners is that workers’ comp relinquishes the employee’s right to sue their employer for negligence. So, by getting workers’ comp, you can protect yourself from lawsuits due to an employee’s personal injury at the workplace.
Any business with five or more full-time or part-time employees is required to get workers’ compensation insurance. Moreover, all construction-related companies must have coverage if they have even one employee, as this field is so high-risk.
As you can see, by protecting your workers’ rights, you protect your own rights as well with workers’ comp. For fast and accurate MO workers compensation quotes, reach out to a well-reputed insurance provider today to discuss your startup. Feel free to shop around for the best deal, as quotes will vary.
Contracts for All Employees
It can be tempting to some startup heads to try to employ some staff in an unofficial capacity to avoid complex paperwork or complying with legal employee benefits, but this is never a good idea. Protect yourself from legally iffy situations by ensuring all of your employees have proper contracts. You can hire the help of a legal expert to make sure your contracts comply with all regulations and cover all grounds, including health and safety, code of conduct, discrimination, working hours, holidays, and sick pay.
For any employees working on-site or in company vehicles, you will also need to make sure that you are providing a safe and well-maintained work environment for all staff members. This includes all health and safety considerations, as well as enforcing appropriate workplace behavior and having zero tolerance for bullying or abuse of staff.
Comply with Health and Safety Regulations
Another great way to avoid lawsuits and protect your rights as a startup business owner is to make sure all of your business practices and premises comply with health and safety regulations. In the US, The Occupational Safety and Health Administration (OSHA) regulates health and safety practices. The guidance and enforced regulations provided by OSHA intend to protect employees from unsafe or unfair working environments, but they can protect employers too. By complying with OSHA regulations, you can keep your company’s reputation safe and avoid sticky legal situations.
Some health and safety guidelines are not regulated by OSHA, such as ideal working temperature, as this varies from person to person (however OSHA recommends keeping the temperature between 68 and 78 degrees Fahrenheit). While other guidelines are regulated and enforced, such as the prevention of exposure to toxic chemicals and excessive noise.
Invest in Proper Security
You will have to think about online security when starting a business, as well as physical security solutions for your brick-and-mortar premises. This is essential for protecting your products and business equipment from theft or damage. On-site security solutions should include security cameras and alarm systems. If you think it necessary, you can also hire security guards.
Digital security can be complex, as cyberattacks tend to be sudden and take you by surprise. There are ways to protect your digital information, such as by using password protection, two-step verification, security software, and encrypting important information. Things like financial data, employee and client personal information, and your personal information should be heavily guarded digitally.
Trademark Your Intellectual Property
If you have had an original business idea or come up with a unique product design, it is recommended to protect your intellectual property by trademarking or copyrighting it. This can be a complex process, so it is a good idea to reach out to an intellectual property lawyer to ensure your rights are protected. If you do not take this action, you leave yourself at risk of having your intellectual property stolen by a competing company. It is your right to protect your original ideas, so do not allow anyone else to take them and profit from them as if they are their own.
Outsource Smartly
Finally, if you outsource aspects of your business to another company or you have outside suppliers of business products or services, it is vital that you ensure you cannot be held liable for their actions. If your suppliers are found to be guilty of immoral or unethical business practices, for instance, you do not want to be tarnished by their reputation.
So, when outsourcing work to other companies or developing business agreements and partnerships, you need to do your homework and make sure the other company is above-board and legitimate. Note any rumors of poor staff treatment, health and safety concerns, or illegitimate business practices, and do not tie yourself to such things.
Now, you should have a better understanding of how to protect your rights when you start a new business. There is a lot to think about, from workers’ compensation and contracts to health and safety regulations and proper security. If your startup is based on an original business idea, you will also need to trademark your intellectual property to protect yourself against theft of this kind. Lastly, we have suggested that you outsource smartly. Do not associate with companies that follow bad business processes and treat their staff poorly. You will need to take all of the smart steps suggested above to minimize the risks of lawsuits and theft and protect your startup’s reputation.
