Five Ways Business Owners can Avoid Being Sued
Running a business can be fun and profitable; however, it is no fun to get sued. Any lawsuit can be costly, time-consuming, and even emotionally draining for all parties involved. For the majority of small businesses, accusations related to a pending lawsuit can lead to seriously strain their reputation. That is why business owners must protect themselves from damaging expenses and devastating outcomes that result from an unfavorable court decision. Aside from learning more about the Employment Law in the state, the following will help business owners avoid a lawsuit:
Draft Legal Contracts
Any business must use legal contracts drafted by a lawyer when dealing with another company or individual. This is applicable to all businesses as contracts can protect their interest when a lawsuit is filed against a business. Business owners must define the services they are offering to a customer to minimize the possibility of legal disputes. Legal documentation will state what was expected from every party in a binding agreement.
Observe High Standards of Health and Safety
Maintaining the highest possible health, security, and safety standards at a business will benefit your employees and customers. Some of the possible lawsuits that could arise from health and safety issues include personal injury from contaminated food items, slip-and-fall incidents, and poor construction and repairs, as well as product liability and personal property damage.
Offer Excellent Customer Service
Customers may sue a business for something if it did not meet their expectations of good customer service. The best opportunity to stop a customer from suing is when they have a problem or complaint with you. Thus, address any issues on time and make reparations in-house. This way, the customer won’t be forced to take their complaint to court.
Have Active Legal Counsel
Keep in mind that your ignorance of the laws does not exempt you from getting sued. Thus, if you break a law regarding employee compensation, for instance, the employee in question can sue you for it, even if you are not aware of the law. Thus, ensure you have active legal counsel to educate you about everything your business requires. Sometimes, having knowledge of certain risks before you act can save you headaches down the road.
Have Written Policies and Procedures
To avoid being used, you need to follow written policies and procedures. A policy and procedure manual will set out what is expected of your employees as well as the best and safest ways to do their jobs.