One can liken protecting your business to legal planning—an undertaking which incorporates many facets, as well as risk management. Business owners instigate business protection strategies in order to protect their enterprises against litigation and creditors. Appropriate insurance in a sense is much more important given the nature of today’s society: a litigious civilisation wherein defendants with wealth aren’t immune to being scrutinised.
This is where several protective methods come into play, such as Management Liability coverage. Companies like Insuring theProduct, can assist businesses to obtain this special insurance policy which helps companies on the Sunshine Coast and beyond to protect key intangibles from the claims of creditors. Included in the latter are patents, copyrights and trademarks (which primarily document ownership), confidentiality/non-disclosure agreements, employment agreements, data backup and the like.
Outside entities can lay a lot of different claims down against any business, though such are classified under two major ones: internal and external claims. Internal claims can instigate from employees or staff and even shareholders within the company. External claims can arise from competitors or creditors over the company’s actions.
Unfortunately too few business owners, ‘shut the gate after the horse has bolted’ when it comes to ensuring their business is adequately insured. It is supposed to be done before and not after a crisis has happened. By the time an individual suffers a serious loss or liability claim which threatens to wipe out their wealth, it’s too late to spring into business protection mode.
All in all, the final line of defence, when faced with possible litigation, should be insurance. It’s important to get the right advice from an insurance adviser such as Insuring theProduct on the Sunshine Coast to obtain the right liability limits and coverage. A good management liability policy in place, as part of a comprehensive insurance program, creates a solid platform against litigation.
This information is not intended to be advice and you should not rely on it as a substitute for any form of advice. You should always consider the PDS / Policy wording before making a decision.
Asset Protection For Business Owners, FA-Mag.com, March 7, 2014
Protecting Your Company’s Most Important Assets, Entrepreneur, November 1, 2001
Asset Protection For The Business Owner, Investopedia
Asset Protection: Business Owners Beware! Forbes, January 23, 2013
6 Asset Protection Strategies To Shield Your Wealth, Forbes, October 9, 2013
5 Tips For Effective Asset Protection Planning, PersonalIncome.org, June 3, 2014