Running your own business is no walk in the park, as exciting and fulfilling it can be, it also comes with a huge responsibility. It takes a lot of hard work, patience, and money to get your business launched and keep it thriving, and that’s why getting a lawsuit is the worst nightmare for any business owner. Business lawsuits are very expensive, time-consuming, frustrating, and they can ruin a business’s entire reputation. That’s why you need to take the necessary actions to protect your business from enduring any kind of legal liabilities. In these situations, here are some steps you can take.
1. Get Insurance
Even though it’s not required of businesses to have it, it’s always a good idea to get liability insurance. It comes in many types including Commercial general liability, professional liability, Cyber Liability, Directors & Officers liability, and Product liability. These come in handy in the case a customer injures themselves in your business parameters for example. Although insurance won’t stop your business from getting lawsuits, it’s a sort of protection that covers the costs associated with a lawsuit.
2. Keep Everything In Writing
It might sound like a hassle to keep every single official agreement in writing, but you’ll thank yourself for it later when it’s the reason your business is spared from a lawsuit. Keeping records of everything helps settle conflicts and clarify the rights and obligations of each party if you’re sued. Things you should be keeping documentation of are contracts, invoices, and payment records, as well as emails. It’s also important to write air-tight contracts with details like the services or products you’ll present, price, and delivery date. Remember to also retain related records, including emails or any phone interactions, in case a disagreement arises.
3. Provide Excellent Customer Service
The best you can protect yourself against legal liabilities is by providing excellent service to your customers. It’s impossible to please every single customer, but skilled customer service agents can handle a displeased customer and prevent things from escalating to a lawsuit. You’ll be surprised by how many major disputes could have been prevented with good customer service. Remember that customers care most about being heard and be taken seriously when they have a complaint or concern. Having well-trained employees in customer relations will go a long way in avoiding legal liabilities.
4. Get Employees Acquainted With Company Policies and Procedures
There’s no doubt that you need to draft proper workplace policies and procedures to prevent lawsuits. However, what’s important is that your employees are familiar with these policies. They are as good as nothing if your employees do not use them as a handbook to perform their jobs in a way that protects your business. They’re also essential because your own employees could be the ones taking legal action against you. That’s why you must make sure they’re aware of their rights and responsibilities as well as the disciplinary actions that you have the right to take when they violate company policy.
5. Hire An Experienced Lawyer
With the reputation of your business at stake with a lawsuit, hiring no other than an experienced lawyer of the matter is of great significance. All these previous steps require extensive legal knowledge, which is why the corporate law specialists at www.alvinlegal.com.au recommend you hire a business lawyer. They should have a focused background in business law to be able to write up those sound contracts, keep records and documentation, and write up efficient and comprehensive company policies. Having legal consultation also helps you not go down paths that lead to a lawsuit and have a backup if one arises.
6. Develop Processes and Response Plans
To reduce the chance of dealing with legal liabilities, you need to first identify areas of risk in your business like things that can harm employees, customers, and the business itself. It could be anything from property damage, bodily injury, and financial loss to equipment breakdowns or malfunctions and product malfunction. Then you’ll need to set up procedures that can reduce these risks such as workplace safety requirements. For caution, you should also have a set of response plans for worst-case scenarios prepared with the help of your business lawyer. Make sure you also test these procedures and response plans to identify any faults.
These are pretty much all the measures you can take to level up the protection of your business against any legal liability. You won’t be able to achieve maximum protection without the help of an expert in corporate law as well as good management skills. Ensuring your employees are well-trained and are satisfied in their positions can go a long way. The most important thing to strive for, as a business, is to build a good reservoir with your community based on honesty and ethical practices paired with quality service.