Biz Tips #2: Risk Management

Engaging in any business or holding assets through a limited liability entity is generally cleaner and smarter than putting your good self personally on the front line.

Forming a limited company is a form of self preservation and should always be a start-up consideration.

You will need to weigh up the advantages and disadvantages, such as, limited liability, customer perceptions, the extra layer of paperwork, costs in filing and paying advisers and taxes, or the fact that you will be obliged to disclose your company and financial information to the public.

Once again, it would depend on your personal business plans, although in most cases, I advise clients to set up a vehicle so that their personal liability is limited, provided they have not been fraudulent!

Always think “Risk”. “What is the risk of being sued for something going wrong?

Aside from forming a limited liability company or partnership, taking out relevant insurance policies can protect your business too. Public and Employers’ Liability policies are the most common and if you allow the public access to your premises, this should also cover Occupier’s Liability. Insurance that is suitable to your business is a must, not a maybe. Find yourself a good broker to help you with your risk management.

Jonathan Abrams is a Media Lawyer at Gregory Abrams Davidson LLP. You can contact him at jabrams@gadllp.co.uk or +44 (0)20 7979 2066.