5 Legal & Financial Protections Your Business Needs

Your business is an investment that you hope will make you great profit and maybe even have impact in your community. However, one of the key indicators of an investment is risk. In the world of business there are always threats that could challenge your business progress or even legally and financially ruin your business if you’re not careful. In this article, we take a look at five common ways to protect your business so that it has the fortitude to grow unhindered long term.

Terms and Conditions

This category of legal protection for your business is important since it gives you the opportunity to anticipate any concerns that might arise against your business regarding your offers. It basically establishes a contract of sorts with your customers that details your business procedures, what you have agreed to, and restricts the liability exposure your business has with your customers. This may include a variety of agreements, including a refund policy, cancellation policy, returns, money-back guarantees, definitions, and many other items. 

Website Cookies

If your business has a website, a cookie policy should be displayed someplace visible to the customer after they enter your site. Cookies are pieces of data that can be captured in a browser to remember your preferences. Since this means a website is tracking data of visitors, it could be an issue of privacy.  The cookie policy basically informs the visitor of any third-party cookies, the purpose of the cookies, and any opportunity for them to accept or opt out. 


These are statements that are designed to withdraw any responsibility for a possible occurrence that may take place in correlation with the use of your product or service. It is meant to remove any obligations that your company might be linked to legally that could cause harm to your company. You only want your business to be responsible for exactly what you offer and not an iota more. For example, if you offer technical analysis education for day traders, you should probably display a disclaimer that informs your user that you are only providing education and not trading advice, which would require financial licensing. 

Key Person Insurance

Key person insurance is a life insurance policy that a company places on certain people in a business. It is usually used as a hedge against the death or the inability of a person in the business to perform his or her duties. The idea here is that key personnel in your business are ones that would lead to devastation of the business if they died or were rendered unable to perform their duties due to an accident. This type of insurance protects the business financially just in case that there aren’t others that could keep the business afloat until an adequate replacement is put into place. 


Trademarks are items such as designs, words, phrases, or symbols that legally distinguish one company from another. Trademarks fall under the category of protection of intellectual protection although it may or may not be registered. It is important to identify and use a trademark to legally distinguish your company and its derivatives from others. 


The protections listed in this article are not all equally urgent and in some cases they might not even apply to your particular company. However, there is a good chance that at least one of these protections should be in place to prevent your company from falling into unnecessary  legal or financial trouble. Generally speaking, the more protections you can apply to your business, the safer and more valuable your be for the long term.