If you’ve figured out that you don’t know what you don’t know and you’re worried that you’re exposed to risk, then read on….
Many of my clients tell me that they don’t even know how to protect themselves because they don’t understand or know what risks are involved with running a business.
It is incredibly important to have legal protection for your business to (a) sleep better at night, (b) show that you operate in a professional manner; and (c) gain credibility that you know what it is that you’re doing.
Sadly, the top 3 things that entrepreneurs love to forget about or DIY without legal guidance can really get them into huge trouble. What are entrepreneurs doing wrong? They’re:
1. Not using customized client contracts: Sometimes entrepreneurs don’t want to scare off potential clients by breaking out a legal agreement. However, the reality is that a client contract helps clarify the details between the parties and lays out the terms of the business relationship. Both parties will know how long the relationship will last, what the payment terms are and what to do in the event something bad happens or one or both parties are not happy with the way things are going with the relationship. Making expectations clear is super important and helps reduce risk and the threat of being sued by a client or customer.
2. Not using or having appropriate disclaimers: If you have a website, it’s critical to disclaim your liability for things that relate to your business. In other words, you want to put the world on notice that you will not be held liable if they work with your business and that the client has to assume the risk and take personal responsibility for their actions and involvement with your company. For example, if you bake oatmeal dog treats, you won’t be held liable for any food allergy reaction that your dog has to the oatmeal or other ingredients in the dog treats. Disclaimers help clarify the expectations about what you do or the products or services that you offer.
3. Not including privacy policies and terms and conditions on business website: If you collect any type of information from the public through your website, you must have a privacy policy letting people know how you intend to handle their information. There are federal as well as state laws that regulate how you are allowed to handle that information. These policies ensure your visitors that you won’t sell or give out personal information to any other parties. It’s a really good way to gain trust so your visitors feel safe and secure. You also need to have terms and conditions that act as a contract between your business and visitors who land on your website. It helps protect your business from a potential lawsuit by putting people on notice of what your business is and what the information on the website is for. Plus, these terms tell the world that the stuff that’s on your website is yours, i.e. you own it.
If you’d like an in-depth business assessment to see what your exposure is to risk, schedule now at graceleelaw.com or call us at 703.319-7868. We’ll get you in right away!