As a new small business owner in Charleston, SC, you have a lot on your plate. Running a food business requires working long hours, including weekends and holidays. It can be downright overwhelming with so much to do and so little time to do it.
The last thing you want to worry about is facing lawsuits and legal battles. Continue reading if you want to learn more about protecting your small business from potential liability issues.
1. Understand Your Insurance Coverage
Many new entrepreneurs in the food industry know you need the proper insurance to protect your company. After all, accidents happen every day. However, many do not understand the full extent of it.
For example, a new food business owner may know they need general liability insurance but may not have considered needing more specialized insurance, such as professional liability or errors and omissions (E&O) insurance. Understanding your specific insurance needs and investing in suitable types of coverage can provide the proper protection.
As a new entrepreneur in Charleston, it’s recommended that you have a thorough guide to insurance for business owners in South Carolina on hand. As the old saying goes, it’s better to be safe than sorry.
2. Keep Detailed Written Records
This tip may seem like a no-brainer, but many new business owners sometimes forget to do this. As part of your food business’s HACCP plan, you should document every transaction, delivery, and day-to-day task. Each email, text, and phone call should be recorded to show that you have done your due diligence.
This preparation will help you if you need to provide evidence to your lawyers and other legal representatives. In the face of a potential lawsuit, you will be so glad you took the time to keep detailed records.
3. Hire a Competent Lawyer Beforehand
Hiring a skilled attorney before problems arise is key to protecting your investments. Their legal advice can steer you away from unnecessary issues and potential lawsuits. Additionally, if you eventually face a lawsuit, you will have peace of mind knowing who you can consult before making any moves.
It’s recommended that you take your time when choosing an attorney to ensure that they understand local laws and ordinances and have adequate experience in protecting small food businesses like yours.
4. Consider Investing in Cybersecurity
Nowadays, most small businesses use computers to keep track of their records and documents. Hackers know this and use this to their advantage.
For example, hackers can steal private information from your records and hold them for ransom, refusing to return them until you pay a hefty fee. Some hackers will corrupt the files and wreak havoc on your system, ruining all the hard work you have poured into your business.
It’s no secret that more hackers are targeting small businesses because they know they’re easier to infiltrate. A 2017 Ponemon report showed that around 61% of small businesses in the United States faced a cyberattack.
Once word gets out that your files were compromised, many clients may stop doing business with you. What’s worse is that the cyberattack could lead to lawsuits from clients!
Don’t become a hacker’s next victim. Invest in cybersecurity for your company to keep hackers from getting into your files. Additionally, it would help if you educated yourself on the appropriate steps to take when your information is hacked.
Takeaway
You must be knowledgeable and prepared to protect your new SC food business from lawsuits. This includes investing in comprehensive insurance coverage, keeping detailed records and documentation, hiring a qualified lawyer, and shoring up your cybersecurity. Following these tips will help keep your new food business protected and running securely.
