How to Avoid Costly Mistakes at Your Business

When business is good, the last thing you want is for a mishap to occur that puts your business at risk. That means you have to stay vigilant and know the risks. When you are prepared, you can rest easy, knowing you are ready for anything. Here are three ways to keep your business safe.

Follow All Laws and Regulations

There are several agencies that regulate industries throughout the United States, including the Environmental Protection Agency, the Occupational Safety and Health Administration, the Mine Safety and Health Administration, the Equal Employment Opportunity Commission, the Fair Labor Standards Act, and of course the IRS. It is your responsibility as a business owner to understand all the laws and regulations that apply to your industry and to take the necessary measures to comply with them. Noncompliance to these laws and regulations can be extremely costly, in the form of lawsuits, fines, interest, back taxes, and other financial penalties. In addition to these direct forms of financial loss, your reputation can be harmed by any public fallout that occurs as a result of your failure to comply.

Reduce Your Liability

It is important to maintain a safe workplace for your employees and your customers. You should comply with all the OSHA regulations for workplace safety within your industry. Beyond those, maintain a clean and tidy work environment to reduce your liability. Cleaning up spills quickly can help prevent injuries. Just as important is the proper maintenance of stairs, outdoor curbs, landscaping, lighting, and parking lots. Finally, use highly noticeable signs to mark any potential hazards.

Get the Proper Insurance

It is important to assess your business and purchase the proper insurance. Some forms of insurance might be required by law. If you have employees, this includes disability, unemployment, and workers’ compensation insurance. Once you have acquired legally mandated insurance, assess your risks and decide where it would be wise to purchase more. Areas to consider are general liability, product liability, professional liability, commercial property, and litigation insurance. Costs associated with workplace injuries, property damage, and litigation can quickly snowball out of control and put your business at risk. Insurance is an easy way to protect yourself from these very real possibilities.

While there are serious risks involved with each of these areas, it is easy to greatly reduce or even eliminate your risks by taking the necessary precautions. Know the laws, maintain a safe workplace, and be fully insured. Remember, an ounce of prevention is worth a pound of cure.

Check out this article on long-term care insurance and if it is worth it for you!