3 Ways You Can Prevent Your Business From Getting Sued

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Lawsuits happen all the time – they’re a regular part of the business world, and can sometimes be impossible to avoid. Nevertheless, every small business owner should make an effort to avoid lawsuits as much as possible. There are certain things you can do that will protect your business and prevent you from being sued in many circumstances. While this might not make you 100% un-sueable, it will go a long way to stopping a few careless lawsuits that many small businesses sadly fall victim to.

What should you do? Read on to find out…

Always get legal contracts created

Are you dealing with another person or company? Whether this is an employee you’re hiring, a potential client, or a new supplier – you need to have legal contracts each and every time. These contracts are an opportunity for you to clearly state the terms of your deal on paper. For employees, it lets you know what’s expected of them, what your business is entitled to do, and so on. The same goes for clients and suppliers, and this is a way of avoiding being sued if something goes wrong.

For example, a client might try to sue you because they’re unhappy with the work or what you’ve charged them. If they have signed a contract that clearly stipulates your prices and the work you will do, they can’t sue you if you have followed through with your side of the contract.

Protect your business with insurance

In truth, the majority of lawsuits against small businesses come in the form of compensation claims. Typically, someone will get injured on your premises and sue you for compensation. Or, in the case of door-to-door businesses, you might damage someone’s property while on the job, and they’re entitled to sue you.

Lawsuits can be avoided if you have the right protection in place. Normally, all you need is liability insurance for small business owners. Here, if someone gets hurt or you damage their property, your insurance provider can pay compensation, avoiding the need for any lawsuits. Thus, your reputation is protected, and you don’t have to deal with days in court.

Don’t take any risks

To prevent lawsuits, you have to think about how they come about. We’ve covered a few situations in the previous tips, but there’s still a way that businesses are sued that we haven’t spoken about.

Put simply, many companies are sued when they take risks or do things that they really shouldn’t. This could be an ethical risk, a moral risk, or a legal one. For example, you put things down as business expenses that you really shouldn’t. The taxman finds out, and you will end up in trouble. In lawsuit terms, you could lie about something to a client, and they find out and can sue you. To ensure nothing bad ever happens, always stay honest, moral, and don’t take any silly risks.

Follow the advice in this guide if you want to make your business as hard to sue as possible. You’ll be able to avoid massive financial distress and maintain a positive reputation if you don’t keep getting sued!

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