A lawsuit is bad enough for big companies that have the resources to weather a protracted case. However, the effects can be devastating for small businesses. To spare their enterprise, small business owners should have a defense attorney if their company is ever sued.
Fortunately, small business owners can arm themselves with information that will show them the proper steps to protect their company from legal action.
Business Owners and Lawsuits – What You Need to Know
The statistics regarding small businesses and lawsuits emphasize the importance of business lawyers. For instance:
- Small businesses pay $20 million out of their pockets to settle tort liability costs.
- On average, small businesses with a turnover of at least $1 million, spend $20,000 on lawsuits every year.
According to Klemm Analysis Group, over half of all civil lawsuits involve small businesses. It’s no wonder that 75% of entrepreneurs are worried about being sued unfairly.
For example, a visitor nicks their arm on a piece of machinery and sues the company for $1 million in damages for emotional trauma caused.
One of the best things small business owners can do is familiarize themselves with the different types of lawsuits. Their civil lawsuit defense lawyers for businesses will provide assistance.
Factors Small Businesses Should Consider to Protect Their Companies
There are many factors that small business owners need to consider before opening their doors. For instance, prioritizing legal protection instead of putting it on the back burner. The fact is, business law defense attorneys for companies can help in other areas.
Drafting formal contracts, for example. Business lawyers ensure they meet the legal requirements and clearly state employees’ rights and responsibilities. This decreases the chances of employment lawsuits.
They also help protect your intellectual property. This is very important if your products or services are entirely your own invention because you don’t want other people piggybacking on your idea.
For example, you’ve adapted a drone with a microfiber duster that reaches the corners of ceilings, fan blades, etc. You don’t want dozens of cheaper knock-offs flooding your market.
5 Tips to Keep Your Business Protected from Lawsuits
Protecting your company involves more than acting on your considerations. There are many opportunities for someone determined to file a lawsuit. You must remove as many opportunities as possible.
1. Put Everything in Black and White and Keep Your End of the Bargain
Keep written records of agreements, employment contracts, payments, emails, phone calls, requests for leave, outsourcing contracts, etc. You’ll be thankful when you’re being sued for breach of contract and you can conclusively prove that you’re in the right.
It works both ways. For example, if your employee handbook says that every second Friday is a half-day, you need to honor that.
2. Follow Your Employment Regulations
When you set rules and regulations you expect your employees to obey, ensure you also comply.
As the boss, you have leeway when it comes to some rules, but there are occasions when you have to be a team player. For example, you can’t have a rule that men must wear ties and then wear t-shirts. You can’t ban cell phones during meetings and then take a personal call from your husband about supper.
3. Keep Employee Communication Open and Clear
Employees appreciate being kept in the loop. It facilitates feelings of inclusion. Use your nous. They don’t need to know you’re buying a different brand of milk, but they do need to know that you’re buying new machinery, which will require on-the-job training.
It works both ways. Have an open door policy and encourage employees to come to you with complaints, suggestions, and personal issues that may affect their work.
4. Work with an Experienced Litigation Defense Attorney for Sued Company
When you’re in the market for a business lawyer, it’s a good idea to look for someone who knows all the local laws and statutes. For example, if you live in California, you should seek a reputable Californian employer defense attorney specializing in small businesses.
Take your time before engaging an attorney. They’re going to have the well-being of your business in their hands. You must be able to work well together and trust them to provide a legal cushion between you and allegations of wrongdoing.
5. Choose the Right General Insurance Liability for Your Business
General liability insurance isn’t required by law, but it’s something that small businesses should have. It provides financial protection against business risks, including third-party injuries and damage to customers’ property. General liability insurance pays the legal costs in a civil lawsuit, including lawyer’s fees and settlements.
Getting insurance coverage makes business sense, but small business owners sometimes have to provide proof of insurance to potential landlords. Banks also need proof of insurance before they provide business loans.
It’s imperative that you find an insurer who inspires confidence, who understands the risks small businesses face, and who will respond to claims immediately.
You don’t want to submit a claim because you’re being sued by a customer who suffered a head injury while on your premises and then wait for a couple of weeks before anyone gets back to you.
Why Does Employee Handbook Play a Huge Part in Your Business?
An employee handbook contains all the information your employees need to work safely, responsibly, and happily. It should contain some information about the business; why it started, its mission, and its values.
More importantly, it must contain information about the policies, procedures, rights, responsibilities, disciplinary action, grounds for termination, and the termination process.
The labor defense attorney for your company can help draft the handbook so it’s legally sound and provides protection against potential lawsuits for discrimination, workplace harassment, and unsafe business practices.
The handbook is like a manual for new employees. It’s an introduction to the company ethos and culture and should foster a sense of belonging.
Hire LibertyBell Law Group’s Employment Law Defense Attorney Near Me
Our employment lawyers don’t just respond to allegations against their clients. We aim to prevent business lawsuits in the first place by providing proper training in things like employee disputes—and investigating your employment policies, processes, and procedures to eliminate potential liabilities and other risks that could lead to civil lawsuits.
Our track record and reputation for service excellence should make us your first choice for a defense attorney if your company is sued. For a free consultation, call us at 866-320-4854 at LibertyBell Law Group today!
