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3 tips to reduce your Alaska business’s overall legal liability

On Behalf of | Apr 4, 2023 | Business Law

Once a business is found legally liable for misfortune suffered by an individual or company, it is common for an exchange of funds to occur. For example, a court might order your business to compensate harmed parties financially.

As you might imagine, a business can only part with so many assets before it begins to suffer or even close altogether. Reducing your legal liability across the board can circumvent lawsuits and claims filed by other parties. Here are a few tips to consider.

Keep your business insurance current

Business insurance policies help protect your bottom line if someone attempts to sue your company. You can choose between general, professional and product liability insurance. For the utmost in protection, consider acquiring all three forms of insurance. Proper insurance will cover your legal expenses while protecting your business and personal funds during litigation.

Update your business structure

Sole proprietorships and business partnerships typically have the highest risk of losing company funds in a lawsuit. To ensure it reduces your legal liability sufficiently, examine the structure of your business. A limited liability company, or LLC, generally protects business owners from at least some legal and financial liability.

Create sound employment policies

Work with your human resources department to implement employment policies that protect your staff from discrimination and harassment. This step alone can prevent employee lawsuits. Remember to stay current with Alaska labor laws (overtime, minimum wage, etc.) to ensure your workers have no cause to seek legal action against you.

Partnering with a law firm that provides premium business services can help you find other ways to reduce your company’s overall legal liability.