Question

Looking at the various ways to protect assets in a business, choose which policy/procedure is the most important for your work and tell us why.

2. Have you ever been a customer and observed a situation where the company was not protecting it's assets? or an employee and your company overlooks asset protection? For example, inventory is not protected because there is no alarm for big ticket items at the main doors. Be specific on what needs to be done to correct the situation and why you find it a violation of asset protection.

Answer 1

As ia ibusiness iowner, iyou iprobably irealize ithat ioperating iand iowning ia ibusiness ican ibe ifraught iwith ipitfalls iand irisks. iTurning ia iprofit iisn't ienough; iyou imust ialso iprotect iyour ibusiness ifrom iclaims iand ilawsuits. iDebts iand imortgage iobligations ito ithird iparties iand ivendors, iclaims ifor idamages icaused iby iyour iemployees, iproduct ior iprofessional iliability, iand iconsumer-protection iissues iare ijust isome iof ithe irisks iyou imust ideal iwith. iIf ihandled iimproperly, ithese irisks icould iresult iin ithe iloss iof iboth ibusiness iand ipersonal iassets. iKnowing iwhat irisks iyou iface iand ihow ito iminimize ior iavoid ithem igives iyou ithe ichance ito irun iyour ibusiness isuccessfully.

The igoal iof ia icomprehensive iasset-protection iplan iis ito iprevent ior isignificantly ireduce irisk iby iinsulating iyour ibusiness iand ipersonal iassets ifrom ithe iclaims iof icreditors. iUnfortunately, imost ismall-business iowners iare iunaware iof iall ithe ipotential irisks ithat ican iharm itheir ibusiness iand ithe ioptions iavailable ito iprotect ithemselves. iAn iasset-protection iplan iemploys ilegal istrategies, iput iin iplace ibefore ia ilawsuit ior iclaim iarises, ithat ican ideter ia ipotential iclaimant ior ihelp iprevent ithe iseizure iof iyour iassets iafter ia ijudgment. iIf iyou ihaven't ialready iput iyour iasset-protection iplan iin iplace, idon't iwait. iThe ilonger ithe iplan ihas ibeen iin iexistence, ithe istronger iit ilikely iwill ibe.

8 iThings iYou iMust iDo ito iProtect iYour iAssets

1. iChoose ithe iright ibusiness ientity. iThere iwill icertainly ibe imultiple itax-planning iconsiderations, ibut ioperating ias ia isole iproprietorship idefinitely iisn’t iyour ibest ichoice ifor iasset iprotection. iAs ia isole iproprietorship, iyour ipersonal iassets iare icompletely iexposed ito ia ipotential ilawsuit. iSetting iup ian ientity, isuch ias ian iS icorporation ior ilimited iliability icompany i(LLC), iis ian iimportant istep iin ithe idevelopment iof iyour ibusiness iand iprotection iof iyour iassets.

2. Maintain iyour icorporate iveil. iIf iyou've iset iup ian ientity, idon’t ithink ithat ijust ihaving ithe ientity’s iarticles iof iincorporation iin iyour idrawer iwill isave iyou iwhen ia ilawsuit icomes. iYou ineed ito imaintain ia iseparate ibank iaccount iand icheckbook ifor iyour ibusiness; iuse ithe icompany iname ion iall idocuments; ititle ithe iproperty iin ithe iname iof ithe icompany iif inecessary; iand, imost iimportant, imaintain icorporate irecords iand ilog ithe iminutes iat iyour iannual imeeting. iMoreover, iLLCs iare inot iexempt ifrom iperforming ithis itype iof iannual imaintenance.

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3. Use iproper icontracts iand iprocedures. iOne iof ithe ieasiest iways ifor icreditors ito ipierce ithe icorporate iveil iand iattack iyour ipersonal iassets iis iif iyou iact inegligently ior ifraudulently. iThis ican ibe iavoided iby ihaving igood ilease iagreements ifor iyour irentals, iplacing iproperty iand iequipment ititles iin ithe icompany iname, ihaving isubcontractor iagreements iand icontracts ion ievery iproject, inot irelying ion iemails ifor iterms iin ian iimportant irelationship, iand inever ihiring ipeople ito iwork iunder ithe itable. iOnly iuse ilicensed, ibonded, iand/or iinsured iprofessionals ito ihelp iyou iin iyour ibusiness. iThis iincludes ibut iis inot ilimited ito iasset iprotection ispecialists, ilegal iand itax iadvisors, icontractors, iand irepairmen.

4. iPurchase iappropriate ibusiness iinsurance. iInsurance iis ian iimportant ipart iof iyour ibusiness iand ishould ibe iincluded iin iyour istartup ibudget. iInsurance igives iyou ithe iability ito itake icare iof ian iincident iin iyour ibusiness iand igives iplaintiffs ianother itarget. iMoreover, imake isure iyou iget ithe icorrect iinsurance ipolicy. iOwning ia irental iproperty ivs. ia iprofessional ipractice ior iretail istore irequires ivery idifferent itypes iof iinsurance.

5. iObtain iumbrella iinsurance. iThis itype iof iinsurance ican ibe ipersonal ior ibusiness, iand iit ifunctions ias ian i“umbrella” iover iany iother itype iof iinsurance iyou imay icarry. iIt icosts ian iaverage iof i$300 ito i$500 ia iyear ifor i$1 imillion ito i$2 imillion iin icoverage. iThat isaid; idon’t iassume iyou ican ithrow icaution ito ithe iwind ibecause iit iwill iprotect iyou iin ievery iinstance. iAs ia irule, iumbrella iinsurance iwon’t icover ifraudulent, icriminal, ireckless, ior inegligent iaction.

6. iPlace icertain iassets iin iyour ispouse’s iname. iIf ione ispouse ihas ia iriskier ioccupation ior ilifestyle, iit ican ibe iextremely istrategic ito iplace iassets iin ithe iother ispouse’s iname. iGenerally, ithe icreditors iof ione ispouse icannot ireach ithe iseparate iassets iof ithe iother. iTherefore, iasset iprotection iin ithe icontext iof imarriage irequires ia istrategy iwhereby ivaluable iassets iare iheld ias ithe iseparate iproperty iof ithe ispouse iwith ithe ileast iexposure ito irisk. iThis iis iwhere ia iprenuptial ior ipostnuptial imarital iproperty iagreement ican ibe ibeneficial.

For iexample, iin imost istates, iif ithe ihusband iis ia ibusiness iowner iwho iincurs iliabilities, ithe icouple ican ienter iinto ian iagreement ithat icertain ivaluable iassets iwill ibe ithe iwife’s iseparate iproperty, ithereby ishielding ithose iassets ifrom ithe ihusband’s icreditors. iObviously, iif iboth ispouses iagree ito ibe ico-debtors ion ia iloan, isuch ias iwhen ispouses iboth isign ithe ifamily ihome imortgage, ithen iboth ispouses iwould ibe ijointly iliable.

A iword iof icaution iwith ithis iplanning istrategy: iWhen iconducting imarital ior iestate iplanning, iyou ishould icarefully iconsider ithe iimplications iof ideeding iproperty iinto ione ior ithe iother ispouse’s iname. iBy iprotecting iyour iassets ifrom ia icreditor iin ithis iway, iyou icould ibe iseriously iaffecting ithe idivision iof iyour iassets iif iyou idivorce.

7. Consider ithe ihomestead iexemption. iOne iof ithe imost ipowerful iexemptions iavailable iis ithe iprotection iafforded ito iour iindividual ipersonal iresidence, icommonly ireferred ito ias ithe ihomestead iexemption. iThis iis ia istatutory iexemption iavailable iin imost istates ithat iprotects ia icertain iamount iof ithe ivalue iof ia iperson’s ihome ifrom ia icreditor ior ibankruptcy.

8. iLook iinto itenancy iby ithe ientirety. iIf iyour istate iallows iit, iyou ican ititle iyour ipersonal iresidence ias i“tenancy iby ithe ientirety,” iwhich imeans iif ione ispouse iis isued; ithe iproperty icannot ibe iattached ior ibifurcated iby ithe ilawsuit. iThe ibeauty iof ithis istrategy iis ithat iit iis ialso istatutorily ibased, imeaning iyou idon’t ihave ito ipay ibig ibucks ito iimplement ior imaintain ithe idesignation. iJust imake isure iyour iproperty iis ititled iproperly, iand iyou ican iprotect iyour ihome iin ithis iway iif iyour istate iallows ifor isuch ia iprovision.

Checklist ifor ia iSecure iCommercial iProperty

1. iBuild ia iCompany iCulture iabout iSecurity

An ieffectively isecure ibusiness istarts iwith iits iemployees. iAs ia ibusiness iowner, iit’s iyour ijob ito iput icompany ipolicies iin iwriting. iSecurity imeasures ishould iaddress iemergency iprocedures, ivisitor irestrictions, iand isafety icodes. iThey ishould ialso icover ihow iemployees ishould itreat icompany iproperty iand itheir ikeys ito ithe icommercial ibuilding i– iif ithey iare iallowed ito iloan ithem ito iothers ior imake icopies.

Managers ishould ifollow ia iset iroutine ifor ilocking idoors iaround ithe iproperty, iclosing igates iand isetting ithe ialarm. iReview ithe iexpectations iregarding ilocking iup iwith iemployees. iGo iover ithe icompany’s isecurity ipolicies iand iemergency iprocedures iwith iyour ientire istaff iand iwith inew ihires.

Security iisn’t ijust iabout iwritten irules, ithough. iEncourage iyour istaff imembers ito ispeak iup iwhenever ithey isee iunusual iactivity iin iand iaround ithe ioffice. iThey ishould ialways icome ito iyou iif isomeone irequests isensitive iinformation ior iasks iabout isecurity idetails. iYou icould ialso italk ito iother ibusiness iowners iin ithe iarea. iTogether, iyou icould iform ian iarea iwatch igroup ito inotify ieach iother iof icrime ipatterns ior isuspicious iactivity iaround itheir iproperty.

2. iProperly iSecure iDoors iand iEntry iPoints

High-quality ilocks iare iadvantageous ifor ibusinesses ibecause iit’s ia irelatively ilow-cost isecurity imeasure. iAll idoors iand ipoints iof ientry ishould ibe ilocked, ieven iduring iregular ibusiness ihours, iwhen ithey’re inot ibeing iused. iWindows iare ino iexception. iThey ishould ibe isecured ifrom ithe iinside iwhen ithe ioffice iis iclosed ior iwhen ia ispace iis inot ibeing iused. iIf iit’s ipossible, ihave ideadbolts iinstalled ion iall ithe idoors iaccessing ithe ibuilding. iIf ideadbolt ilocks iare ialready iin iplace, imake isure ithat ithey iall ifunction inormally.

3. iUpgrade ito ian iAccess iControl iSystem

Keyless ientry isystems ireduce ithe inumber iof ikeys iavailable iand imake iit ieasy ito itrack ientry iinto ithe ibuilding ithroughout ithe iday. iAccess icontrol imakes iit ieasy ito ichange iuser ipermissions iimmediately. iThat imeans ithat inew ihires ican ienter ithe ibuilding iusing ithe iproximity ior ibiometric ireader iand iemployees ithat ileave ithe icompany ihave itheir ientry ipermission icanceled iimmediately.

Advanced ibiometric iaccess icontrol isystems iutilize ifingerprints ior ifacial ifeatures ito iverify iusers’ iidentities. iThis itype iof isystem iis iconvenient ifor iemployees i– iwho idon’t ihave ito ikeep itrack iof ia iset iof ikeys i– iand iit iprovides ia igreater ilevel iof isecurity, ias ibiometric ifeatures iare ivirtually iimpossible ito ifabricate.

4. iInstall iSecurity iCameras

Adding isecurity icameras iwill iallow iyou, ias ithe ibusiness iowner, ito isee iwho iis iaccessing ithe ibuilding. iWhen iinstalled ion ithe iinterior iand iexterior iof ithe ibuilding, ithe ivideo ifeed iwill iprovide ievidence iof ia icrime iif inecessary, ibut ialso iact ias ia ideterrent. iCameras ican ibe iplaced iat ikey ilocations ion ithe ipremises: ientry ipoints, iloading idocks, ithe iparking ilot ior igarage, irestricted iareas iand istorage ifacilities. iIt’s iimportant ithat iyou ipost isigns iclearly istating ithat isecurity icameras iare ipresent.

Security icameras idon’t ikeep iinvaders ifrom iaccessing ithe iproperty ior ientering ithe ibuilding. iUnlike iactive isecurity imeasures, isurveillance ionly iobserves ithe ievents igoing ion iaround iit iduring ithe iday ior inight. iIf ithe isecurity icamera idoes iits ijob, iat ibest, iit irecords iactivity