Why would asset protection should be talked about when you haven’t run through what the actual risks are? People have had different experiences about getting sued so you may want to be prepared for it, rather than not prepared and have to react.
There are four categories of risks to a business and the first one is clients. If you stuff something up for a client, you cause them a loss and they might sue you to fix out whatever damage or loss that you ended up giving them.
The next one is suppliers, sometimes suppliers sneak into their contract and that is an example of a supplier doubling down on their risk mitigation. If you don’t pay a bill or you have an agreement with the supplier that’s not met, you might be suing them, or they might be suing you for some reason.
The third one is for employees. A HR consultant once said that Fair Works can charge up to $65,000 per offence if you do not meet their Fair Work Act. It’s an incredible amount of money for potentially forgetting a form and employees are one of the largest exposures to a business for asset protection.
The last one is competitors, and this is usually a sort of IP infringement. It could be things like copyright or you were naughty and used someone’s logo or name but this is actually a pretty low risk one.
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