Any business enterprise is faced with some level of risks and pitfalls. Growing your profits isn’t enough; you need to establish adequate protection strategies against theft, lawsuits, claims, and fraud. Some of the issues you need to protect your business against are mortgage obligations and debts owed to third parties and vendors, professional liability, claims for damages occasioned by your employees, consumer protection, and so on.
Identifying the risks and planning on how to avoid or minimize them will make your business look good in the eyes of customers. Here are the three strategies to help you protect your business:
Follow Proper Procedures in Contract Acquisition
If you want to attract creditors to come piercing your corporate veil and attack your personal assets, try acting fraudulently or negligently. If not, ensure that your lease agreements are properly signed and documented according to the state laws. Have proper subcontractor agreements and avoid under the table deals or casual agreements. Use licensed and insured/bonded professionals to carry out your contracts. You may also consider hiring an asset protection professional and tax and legal advisor to advise you accordingly.
Purchase Business Insurance Coverage
Insurance is a critical part of any business enterprise and should be included as part of the startup budget. After years of hard work and dedication, you don’t want to lose your entire empire to burglary, fire, or natural disaster. Business insurance coverage provides protection for unforeseen events that may bring down your company. However, you need to choose the right policy.
An umbrella insurance plan functions as an “umbrella” over whatever insurance cover you hold. Most insurance providers will charge you between $300 and $500 annually for coverage worth between $1 million and $2 million respectively. This kind of coverage is very important to have, but you must keep in mind that you will not be compensated for acts of fraud, negligence, or business crime.
Hire a Reputable Security Firm
Seek the services of a professional security firm with highly trained and licensed staff to protect your business against theft or any act of arsonists. Most security companies, like Security Services Northwest, Inc., have vigilant staff drawn from the military, private security, or law enforcement agencies.
The security officers should:
- Analyze threat potentials in your facility
- Protect your employees and customers from attacks
- Organize and effectively implement defensive responses
- Prepare and respond within 24 hours’ notice
- Armed or unarmed based on your specific requests and requirements.
Designing and implementing an effective business protection plan incorporates several aspects of your enterprise. The primary objective of these strategies is to protect your assets within the business’ operational framework. Consider the services of asset-protection professionals to develop a fool-proof protection plan that works best for your situation.