As a small business owner, you probably have invested most or all of your assets into your business. These financial resources also may be your cushion that could prevent you from losing everything if your business were to collapse. When you hire employees, you not only must look to your own well-being; you must also ensure that your workers remain safe and protected. When one of your workers gets hurt while carrying out duties for your company, it is entirely possible that that individual could sue you for damages.
A lawsuit has the potential to drain your assets and cause your company to fail. Even if you believe that this event could never happen to you or your business, you would do well to prepare for it. Rather than lose your assets, you should understand how to protect your financial resources and how you could be affected if you were to lose them.
Lawsuits Hold You Liable
Even if you were not at work that day when the worker’s accident happened, you could still be held liable for his or her injury. On the webpage www.personalinjurylawyersny.net it is stated that “People suffer accidental injuries every day, ranging from minor to very serious. When these injuries occur because of the actions of another person or entity, the injured victims are entitled to seek damages from the party that was at fault in the incident.”
The court would consider whether or not you provided adequate training on how to prevent accidents at work to your employees. It may also consider whether or not you provided sufficient protection for your workers and whether or not your worker acted with negligence. If the court finds you liable for the person’s injury, you may have to pay out large sums of money and sell your liquid assets to satisfy the judgment. With your assets gone, your company may not be able to survive.
Default on Business Loans
With your assets liquidated and the bulk of your profit being paid out for the judgment, you may not have enough money to pay any loans you took out to start or fund your business. Defaulting on major business loans also jeopardizes your company.
When you default on loans, your lenders could take you to court as well and ask that your business property be seized and sold to satisfy the loans. When this happens, you will have no recourse but to allow your company to be dismantled and sold. You would also be responsible for any balances left over after the sale of your company. People in this situation often have no choice but to declare bankruptcy.
Protecting Your Assets
You may believe that this chain of events could not happen to you and that your assets are well-protected. In fact, if you do not have general business liability insurance, you actually have no protection at all from this scenario. When you are serious about protecting your bank accounts, stocks, investments, and other liquid assets, your primary course of action when setting up your business should be to take out this type of insurance.
Your policy could protect you from lawsuits and judgments. It could also help you survive as an entrepreneur, despite any legal action brought against you by an injured worker.
Retain an Attorney
You can also ensure your success by retaining a business attorney. Attorneys can head off injury lawsuits and protect you from incriminating yourself in any legal action. A business attorney can be a valuable asset that can make sure that you survive a lawsuit and that your assets are protected.
Many business owners make the mistake of not protecting their assets from injury lawsuit judgments. You could lose your assets and your company if a court decides against you. Taking precautions like buying insurance may be your best course of action as you plan for such circumstances.
Entrepreneur Nickey Williams contributes this article in an effort to promote small business welfare and knows that seeking the best legal counsel “business wise” is not an easy feat. The lawyers found at www.personalinjurylawyersny.net are in place to provide those in need of legal aid access to New York area legal professionals. This listing is a comprehensive referral resource for all that have personal injury legal concerns.