5 Tips For Protecting Your Business From Litigation
While there’s no way to guarantee that your business will never be sued, as a business owner, there is a lot that you can do to minimise the risk of litigation
While there’s no way to guarantee that your business will never be sued, as a business owner, there is a lot that you can do to minimise the risk of litigation. Clients, vendors, suppliers, employees and other businesses can all potentially take legal action against your company, so it’s vital that you put measures in place to protect your business.
A lawsuit against your company will not only cost you a lot of money but can also impact your business reputation. To ensure that negative press does not tarnish your company’s good name, you must protect your business and limit the risk of a lawsuit. If your business ever does get sued, the first step should always be to contact reputable business lawyers to help you with your case. However, with the proper protocols in place to protect your business from the outset, you will hopefully be able to avoid ever being sued in the first place.
Let’s take a look at five simple tips to help protect your business from litigation.
Treat Your Employees Fairly
As an employer, you must ensure that you treat your employees fairly to avoid being sued. There are many different reasons that an employee could take legal action against you such as, workplace harassment, discrimination, violation of privacy, or unfair dismissal. Using fair and lawful employment practices will significantly reduce the possibility of one of your employees suing your business.
Understand Your Insurance Requirements
If there is an accident at your business premises, or there is an issue because of the actions of your business, you need to ensure that you have the right insurance in place. In Australia, Public and Product Liability insurance will protect your business if there is a claim filed against your company for compensation because of injury or damage arising from the actions of your business. Having the right insurance will ensure that your business is protected from litigation.
Keep Accurate Records And Documents
One of the best things you can do to avoid finding yourself in legal trouble is to keep accurate records and documents. All agreements with employees, partners, suppliers, customers and any other entities related to your operations should be put in writing and signed by both parties. These agreements should clearly outline the rights and responsibilities of each party, so you have an accurate record of the agreement should there be a dispute in the future.
Be True To Your Word
In business, your reputation is everything. To ensure that your business maintains its integrity and avoids legal proceedings with customers, competitors, employees and the community, you need to uphold your reputation and follow through on your promises. Misrepresenting your business or not delivering on something that you promised, could result in lawsuits of different types being taken against your company. Be true to your word, maintain your reputation, and you can ensure that your company stays out of court.
Focus On Customer Service
Treating your customers well is the best way to ensure that you avoid being taken to court by an angry client. When your customers are upset or angry, things can escalate, and you could very quickly find yourself facing a legal battle. Taking the right approach to customer service and providing your team with effective training to deal with disgruntled clients can help you to avoid going to court.
Protect Your Business From Litigation Moving Forward
Being sued can be a stressful, costly and time-consuming experience that every business owner should strive to avoid. Keeping accurate records, operating legally and above board, and conducting your business in an ethical, moral and honest way will help to protect your business from litigation in the future. With your company at less risk of being sued, you will have more time and energy to focus on the future success of your business instead of worrying about potential lawsuits.