Setting up any business is going to be a challenge and as you would expect, there are legal matters to address. To start with, the business must be registered with the government, which is compulsory in Thailand and any other country in the world. When you offer a product or service to the general public, you take on a certain amount of liability, which will be discussed in this article.
Employer’s Liability Insurance
This protects your workers. Should there be an accident and someone suffers a personal injury, this policy protects the business by settling compensation and legal fees. In some countries, this is compulsory if a business has even one employee, which underlines the need for protection.
General Liability Insurance
Also known as ‘public liability’ insurance, this protects the business in the event a customer (or member of the public) files a lawsuit to claim compensation. In the event a 3rd party does file a lawsuit against your business, contact an established law firm such as Vize Counselor in Thailand, who can advise you accordingly and prepare your response. Imagine one of your workers spilling a hot drink on the client’s laptop or a passer-by is critically injured by falling debris – these things can and do happen, which is why you need to take out general liability insurance.
Error & Omission Insurance
E & O insurance comes into play if you are sued by a 3rd party due to negligence or mistakes, which we can all make. Such a claim could destroy even a large company if it is a big project; E & O insurance is essential for some business sectors, especially design. We are all human and can make mistakes at any time and if this causes an issue with a customer, you are covered.
Business Premises
Of course, your place of business should be insured against fire and theft and a commercial insurance broker can combine several policies to give you the right cover. The broker can suggest numerous policies, which may or may not be compulsory and as the business owner, it is your job to minimise risks to the business. All stock and inventory should be included in the cover and prior to signing, ask a lawyer to take a look at the terms and conditions.
Lease Agreements & Contracts
You should always consult a lawyer prior to signing a lease agreement or contract with another party. Failing to scan a contract could lead to you having to pay a lot of money, or be restricted in some way. Talk to a lawyer before you sign a commercial premises lease agreement, which ensures there are no hidden terms and conditions.
If you are in the process of planning a business start-up here in Thailand, for example, you might be able to quality for BOI incentives. You will need the services of a business lawyer to facilitate registering the business, plus he or she can advise you about other legal aspects you may not have considered.
