Practical Small Business Risk Management Tactics

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Starting a business is hard. Owning and remaining successful as a small business owner can be even harder. Business owners have to be multi-talented as they juggle myriad pressing issues that will ensure their business keeps going. One such pressing issue is the limiting of risk.

Every business faces risk. Many businesses risk someone being injured on their property while others must worry about whether someone will become sick by food products. There is liability in everything, the good news is that Seattle business attorneys and other activities can help limit your risk to lawsuits and criminal proceedings. The following is a look at some of the most important practical risk management tactics our Seattle business lawyers recommend every business to follow:

Practical Small Business Risk Management Tactics

  1. Separate business and self. First things first, while it might have benefited you in the beginning to operate as a sole proprietorship, it is important to separate oneself from the business as it grows. If you do not, your personal assets — including your home — can be attached in a civil lawsuit against your business. Part of what an expert business lawyer Seattle can offer is a method to separate individuals from their business. Some ways of doing so include incorporating or transitioning so as to have a trust own the business and the individual. 
  2. Get insurance. Every business needs insurance. It does not matter if you own a massive retail store that is open to the general Seattle public or you sell food online via a cottage food business operating within your own home, you need insurance. General liability insurance is a must-have as it will offer a measure of financial protection for most events, such as a slip and fall injury. However, businesses should talk more at length with an insurer about the specifics of their business and the types of threats or risks they are most likely to face. That insurer can then recommend the best types of insurance for that business. 
  3. Retain an experienced Seattle business attorney. One of the benefits of being properly insured is that the insurance company will provide an attorney should you ever face a lawsuit due to something like a slip and fall injury. However, businesses should not just rely on this type of attorney. Being proactive is always more fruitful than waiting and being forced to be reactive. Hiring an experienced business attorney Seattle from the onset (or as soon as you can manage) will help you in making the right decisions throughout the course of business, particularly helping you develop good risk management policies. Experienced Seattle Washington attorneys can assist you in developing a business plan and answer questions you might have regarding the risks inherent in a business decision you are considering. They can also ensure your contracts have built-in liability protection in them. This means if some supplier, an act of nature, or other unforeseen event prevents you from fulfilling a contract, your exposure can be limited or eliminated. If you are ever sued, your attorney will work in tandem with your insurance attorney to further protect you and your business from financial losses.

Contact Your Local Seattle Washington Attorneys to Learn More

We hope the above quick run-through helps illustrate some of the most impactful ways in which small businesses can protect and mitigate risks. But it is important to underscore that every business is different. The biggest risks for one business will not be the same for a business in another type of industry. The best risk management tactics start with contacting risk management professionals such as our team at Frey Buck We are proud to work and have worked with Seattle businesses in just about every industry you can imagine. Contact our team today to learn more about risk management and for personal recommendations for your business. 

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