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An Overview of the Benefits and Risks of Electronic Signatures

Electronic signatures are becoming more and more common. In many cases, employers are requiring electronic signatures so they can have the ability to verify the authenticity of documents. However, not every company is legally required to do this. Electronic signatures may be difficult to implement if you don’t have the right software or know how to use them properly. Here are some things you should know about e-signatures so you can stay on top of the times.

What is an electronic signature?

An electronic signature is a document that identifies the person who has signed it. While they don’t have to be on paper, they are typically made in digital form. They are typically created by electronic signature software, which helps to create and authenticate the signature itself as well as store the signed documents. It’s important to understand what an e-signature is so you can make the right decisions for your business.

An e-signature is different from a handwritten signature because it’s electronic, rather than written on paper. This means that there are no physical changes to the document or the signing process itself—only digital ones. The disadvantage of this is that e-signatures can be copied and altered, which may cause problems down the line with legalities or authenticity.

In addition to being able to digitally sign documents and contracts, you can also electronically sign legal forms like affidavits and powers of attorney that state your authority as an individual signing on behalf of someone else.

Why do companies require electronic signatures?

Companies that require electronic signatures do so because they want to verify the authenticity of documents, rather than relying on handwritten ones. This is especially true when it comes to legal documents, such as contracts and wills. It’s also important for companies to keep their paperwork electronically available since there are often a lot of records and it can be complicated for employees to find the paper document if necessary.

How do e-signatures work?

An electronic signature is a digital substitute for a hand-written signature. All e-signatures have the same legitimacy as a handwritten signature, and they are just as legally binding. The most important thing to know about e-signatures is that they are only legally valid if they come from someone who has the proper authority to sign the document in question. For example, your company must have signed off on their authorization form before you can use an electronic signature.

What are the benefits of having an e-signature?

If your company does a lot of business with other companies, an electronic signature could be an efficient way for both parties to document their agreement and avoid any future disputes over who owes what in terms of money, etc. With many businesses not legally required to use e-signatures, it’s often a good idea for smaller companies as well just in case they are ever sued due to contract disputes or other reasons where they would need an official and unchangeable record of the agreement being signed between two parties.

An e-signature also has the benefit of making it easier for the individual receiving work from your company because there is no possibility for human error when typing in your name and password each time.

What are the risks of relying on e-signatures?

The most obvious risk of relying on electronic signatures is the possibility that fraudulent ones might be submitted for your business. If you’re not careful, fraud could happen and it could be difficult to identify. This is why it’s important that you have proper safeguards in place to ensure the accuracy of all your documents. Without a doubt, e-signatures are becoming more popular, but they aren’t without risks. You need to invest in the right software and know how to use it properly so you can avoid potential problems down the line.


Interacting with a company electronically is convenient and efficient, but it also comes with risks. Using electronic signature software can help alleviate these risks and provide greater peace of mind for customers, employees, and companies.

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