As an entrepreneur, expensive and unexpected litigation comes at you from every direction. Angry customers, careless employees, manufacturing defects and malignant actors with an agenda all conspire to threaten your business with litigation that you cannot afford to ignore. It doesn’t require a flagrant violation of the law on your part for an opposing lawyer to come up with a reason to sue you, and the consequences can be devastating. You are not without defensive strategies, however. You can protect your business from lawsuits by enforcing these four workplace policies designed to protect your business from ruinous lawsuits.
Consider Product Liability Insurance
If you make, sell or distribute a product that becomes the cause of an injury to an end-user of it, your interests need to be protected in the event that a claim for injury or loss is filed in court. Product liability polices exist to defend you and your company’s assets in court when such claims arise. Product liability insurance is not expensive, and is not difficult to understand. You should direct any questions you may have about product liability and insurance to your regular insurance agent.
Avoiding Employee Lawsuits
Being sued by present and former employees is far more common than most business owners like to think. The U.S. Small Business Administration has advice for business owners who want to avoid employee litigation altogether. Begin with a policy that recognizes the good intentions concept, a strategy that puts a premium on the importance of hiring the right candidate in the first place. It also recognizes that firms must accommodate disabled employees and their needs. Finally, it’s critical for you to remain aware of all labor laws and regulations that you’re obligated to comply with.
Understanding the Opposition
Aggrieved parties wishing to sue you won’t need to pay any upfront costs when filing a court case against you. This is important for you to know. The legal professionals from the firm of Pritzker Law disclose that clients pay no up-front fees for liability cases brought against business entities, and that lawyers prosecuting such cases are not paid unless they win their cases. The foregoing facts will have a significant influence over claimants in terms of their motivations to pursue litigation.
Conduct Yourself Ethically
You can avoid costly litigation by operating in good faith at all times. In all of your dealings, keep your word and make every attempt to resolve disagreements before they escalate. Many frivolous lawsuits arise from petty arguments stemming from perceived slights. Be informed that punitive damages connected to intentional misconduct are normally not covered under your liability insurance contracts.
Business managers have a responsibility to safeguard their organization’s assets from crippling lawsuits. Having the above internal policies in place and a habit of exercising reasonable care during normal business operations should be sufficient to provide you with the peace of mind every professional businessperson in your situation seeks.