Protecting yourself from legal risks starts with being proactive about organizing and safeguarding your important documents. Here are some best practices to reduce your risk and better protect yourself.
- Digitize Your Documents: Digitally scan and store legal papers, receipts, contracts and other important files. Using cloud storage services like Google Drive or Dropbox can provide easier access and protection in the event of lost or misplaced documents.
- Back Up Regularly: Keep copies of essential documents on a secure external hard drive or secondary cloud service. This provides a solid back-up in the event of a cyberattack or accidental deletion.
- Secure Physical Files: Store original documents, such as deeds, birth certificates, policies and contracts, in a fireproof/waterproof safe.
- Stay Organized: Use clearly labeled folders—both physical and digital—to keep track of receipts, warranties and agreements. Also, maintain all documentation for significant purchases, repairs or medical treatments. Proper documentation can help in disputes or tax audits.
- Maintain Password Security: Use strong, unique passwords for accessing digital files and encrypt sensitive data when possible.
- Review and Update Regularly: Periodically review your documents so they are up-to-date and still meet your needs. Dispose of outdated paperwork securely by shredding it.
- Understand Your Insurance Coverage: Regularly review your auto, home and health insurance policies to maintain adequate protection, especially as your assets, income and lifestyle changes and evolves.