Running a business is a costly affair. You’ve got to invest in resources, cover overheads, send your staff home with a fair pay package and that’s just the beginning. It’s only natural that you’ll look for ways to cut costs wherever possible to ensure your business thrives instead of simply surviving.
If you’ve never sat down and totted up how much your company spends on legal costs, you could be in for a rude awakening. Covering legal expenses is one of the easiest ways to burn through money, and so they’re the obvious target when it comes to cutting expenditure.
In this article, we explore how to minimise your business’ legal costs.
What are some of the main legal costs to businesses?
Many businesses will face compensation cases which will result in legal costs. This compensation may be sought after by the employees, the clients or even someone who isn’t involved with your business but who is hurt or wronged because of it. For example, a delivery driver who slips on a wet floor and breaks their ankle could claim personal injury compensation.
Handling the legal processes behind fines and fees is another common cause of legal costs to businesses. For example, if the company is found to have breached GDPR they’ll need the support of a solicitor to handle the situation appropriately.
Be mindful of solicitors’ fees
It’s likely at some point your business will need the advice of a solicitor. If you find your business requires legal support often, it may be worth hiring an in-house counsel or even a full legal team. However, if you haven’t got the budget or resources to do this, consider using no win no fee solicitors, as this could prevent paying legal fees for cases which are unsuccessful.
Avoid GDPR Fines
In 2018, the rules around obtaining and processing personal and sensitive data were streamlined into what we now know as GDPR. These rules set out clear guidelines for businesses to follow, to protect any data in their possession.
Breaching GDPR will result in a maximum fine of £17.5 million or 4% of the company’s annual turnover (whichever is the highest amount). The legal support needed to process a fine and deal with the reputational damage will come with a hefty price tag, so it would be prudent to take steps to prevent GDPR mishaps.
Prioritise health and safety
A compensation payment could be a significant blow to your company’s finances, so it’s vital to take steps to prevent accidents on your premises and keep your employees and visitors safe. Conducting regular risk assessments will help you remain aware of any risks to health and safety, allowing you the chance to mitigate these before they put anyone in danger.