How can I safeguard my small business during coronavirus?

By Jessica Suotmaa 0

As the coronavirus pandemic continues to affect small businesses post-lockdown, many small business owners might wonder what can be done to safeguard the future of their business.  With new regulations for reopening during the COVID-19 pandemic (and the recent protests), you might question whether it is enough to continue the status quo.  If you’ve come to determine that business cannot continue as usual, then this article is for you. Here, we list six ways you can safeguard your small business during difficult times.

1. Business Strategy

When the economy is not doing well, it is a good time to review your current and past business strategies.  See how your business has grown, why you made the changes you made, and whether you need to make additional changes. Try to predict what the future will look like as a result of the pandemic, and simulate your business model–does it work? Is your business profitable? Or maybe you need to make adjustments.

Economic downturn can change the outlook of supply and demand, inventory, and prices. Make sure you leave nothing out of your review.

2. Regulations and Compliance

As conditions change, be sure to remain to up-to-date on business regulations, employment regulations, and any other regulations that require compliance.  This is also a good time to review tax compliance, and how you can minimize your end-of-your business taxes.

3. Contractual Obligations

If you have obligations to vendors, suppliers, or clients, ensure that you are able to meet your contractual obligations. Try to negotiate whenever possible if the reason you’re unable to meet requirements is due to circumstances out of your control, e.g. pandemic. If you need assistance with negotiations, feel free to consult a qualified business attorney.

In addition, it’s a good time to evaluate the relationships you have with vendors, suppliers, or clients, and prioritize those of more importance.  Add value to the important relationships by communicating more with them and finding out how they are also affected by current circumstances. You might discover new ways to serve your clients through these discussions.

4. Business Insurance

If you have a current policy, review the relevant insurance policies regarding business interruption and event cancellation.  If you do not have insurance policies for your business, this is a good time to consider adding a good insurance policy to your business arsenal.

5. Commercial Real Estate

If you have a mortgage, or commercial lease, identify and review updated policies. Remember to ask about repercussions on non-payment of rent due to impact on the business.

6. Employment

If your business has employees, be sure to remain up-to-date on current employment policies and benefits. Review your employee handbooks for policies on sick and family leave to ensure compliance with local regulations.

 

While we try to suggest what we can in our articles, we realize that every small business is different.  We welcome you to contact our office to discuss your business’ unique needs during these challenging times.

Who and What is exempt from the Public Charge rule

By Jessica Suotmaa 0

On Monday, February 24, 2020, the new United States Citizenship and Immigration Services (USCIS) Public Charge rule goes into effect. While we’ve written about it in-depth before, we would like to assure our readers which services and benefits are exempt from the rule, and who the rule does not affect. This article serves to clearly summarize all the public benefits you do not need to be worried about.

Let’s start with who needn’t be worried about the a Public Charge rule:

  1. Asylees and Refugees
  2. Victims of Trafficking
  3. Victims of Domestic Violence
  4. Anyone granted relief under the Cuban Adjustment Act, the Nicaraguan and Central American Relief Act and the Haitian Refugee Immigration Fairness Act

Also, please note that the Public Charge rule applies to individuals trying to enter the U.S , adjust status, or apply for permanent residence. It does not affect your green card renewal (unless you’re absent for 6 months or longer) or citizenship application (naturalization).

Holders of U-visas, T-visas, or those who have TPS, or Special Immigrant Juvenile Status also need not worry about the public charge rule affecting their visas.

Next, let’s look at which benefits are exempt from the rule:

  1. State or local health plans (e.g. Medi-Cal)
  2. Children’s Health Insurance Program (CHIP)
  3. Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)
  4. School lunch programs
  5. Shelters
  6. Food banks

In other words, the Public Charge Rule looks at the age, health and income of the incoming immigrant and checks for the following public assistance programs:

  • Supplemental Nutrition Assistance Program (SNAP, EBT, Food Stamps)
  • Federal Public Housing Program or Section 8 Housing
  • Medicaid (except emergency services, children under 21 years of age, pregnant women, and new mothers)
  • Cash Assistance Programs

Any benefit or assistance program not listed above will not be counted towards the public charge. If you’re not sure though, ask us!

How Much Protection Does Your Business Actually Need?

By Lisa 0

If you own a business, you need insurance to protect it. The world is unpredictable. Although you can take some precautions, you cannot control or prevent every problem. An unexpected weather event can damage your main facility. An unforeseen problem can injure someone using your product. Even as attorneys, we have malpractice insurance.  The amount of insurance protection your business needs depends on several factors.

Where Are You Located?

Basic liability and commercial property insurance should handle most issues that happen at your physical location. The cost and limits of that insurance are based on the location and nature of your physical space.

The reason an insurance adjuster will come to your location when you start a policy is because the insurance company needs to have an idea of any potential risks. A business located in a flood plain will have higher insurance costs than a business in a safer zone.

It also makes a difference if you are a brick and mortar business where many clients will come to you during the day or an online company with little direct customer contact.

What Do You Do?

Different businesses carry different kinds of risks. People can be injured in both a family restaurant and a skydiving expedition, but the types of injury and risks of injury are quite different. In the case of product liability, insurance looks at the type of product your company makes, and how risky it is to be on the market. Your legal team or insurance company will ensure that you meet the legal requirement for your type of business. They will also advise you of expanded coverage options if you run a higher risk business.

What Sort of Equipment Do You Have?

Your employees are your biggest asset as a business, but they can also suffer injury and bring claims against your company. The level of coverage you need can depend on the type of equipment you use. Even with standard safety procedures, people are injured by manufacturing equipment on a daily basis. Certain types of equipment also require regular maintenance and safety inspections. On the other hand, an office worker has less exposure to serious injury, requiring less in insurance coverage.

An uncovered claim can have a serious financial impact on your business. It can also take up time and energy as you work through the legal system. By making certain that your coverage is sufficient and up to date, you are protecting your business from the unexpected.

For all your business advice needs, Lum Law Group is here to help. Contact us to find out how we can best serve your needs!