A record retention program is a written policy that explains how long different types of records must be kept in the ordinary course of business. This includes not just paper documents, but all records, including those created and stored electronically.

Years ago, record retention focused mainly on paper files and the categories associated with them. Today, however, the scope is far broader. Modern records can include:

• Emails and messaging
• Electronically stored documents (including PDFs and Word files)
• Meeting notes and calendar entries
• Video footage and recordings
• Other digital data created during day-to-day operations

Because of this, a retention policy should be clear, documented, and accessible to employees who handle records under the policy.

Why Do You Need a Record Retention Program?

A record retention program helps business owners and employees understand record-keeping obligations in a way that is consistent, predictable, and reviewable. In practice, there are several key reasons to have one:

1) Legal compliance

Many laws require businesses to maintain certain records for specific periods of time. For example, tax-related records often must be preserved for a set number of years.

The risk is not just a potential penalty—it can also be much harder to defend the business if records are missing. Audits may occur years after the tax year in question, and if required records were destroyed too early, the business may be unable to support its position.

Businesses should also be aware that they may have certain record keeping obligations for situations that could reasonably result in potential litigation.

2) Risk management for lawsuits and claims

Depending on the business, retaining certain records can also support defense against claims. For example:

• A business open to the public may want to preserve information related to customer incidents, such as slips and falls.
• Keeping relevant records for a period that aligns with the applicable statute of limitations can be critical.

3) Business need

Outside of legal considerations, certain businesses may have an operational need to maintain certain records for a period of time. For example:

• A marketing company may want to maintain all customer files for an existing relationship and may even want to keep some of the files for use for potential future clients in a similar space.
• An engineering firm may want to maintain copies of blueprints for the life of a building it designed.

4) Clear email and deletion guidelines

In today’s environment, emails are often among the most important records—and they must be handled properly. Establishing email retention and deletion timelines ensures the business knows how long employee communications are stored and when they may be deleted.

The Bottom Line

A well-designed record retention program provides:

• Retention timeframes for all major categories of records (paper and electronic)
• Guidance on deletion practices—including emails
• Direction on preservation steps if records may become relevant to a potential or pending dispute.