Lawsuits can spell serious trouble for any business. They’re expensive and, depending on why you’re being sued, they have the potential to tank your reputation. When it comes to business lawsuits, it’s far better to take action to prevent them from happening as much as you can. So what can you do to get ahead of lawsuits at your business?
Run Major Decisions by an Attorney
Every business should find a reputable business attorney who they can consult on business matters when needed. To reduce your risk of being sued, run major decisions regarding your business by your attorney first.
There are a ton of laws and regulations that govern business activity. Consulting with an attorney first can help you stay in compliance with those laws and regulations. Don’t have the budget to keep an attorney on your payroll? Consider a consulting arrangement instead.
Your business is responsible for maintaining a safe environment for both employees and consumers. If you fail in this responsibility and someone is injured, you could find yourself facing a lawsuit. Avoid that by taking steps to reduce injuries at your business.
Make sure walkways are clear and have adequate traction to reduce the risk of slips and falls. Your business should be well-lit whenever people are there too. Keeping equipment at your business maintained helps prevent injuries. Make sure that stairs and walkways higher up have rails that are in good condition as well.
Put Agreements in Writing
Sometimes people agree to things verbally but then back out on those agreements for one reason or another. Avoid that problem and the accompanying lawsuits by putting all your agreements in writing and keeping organized records. Doing so can make dispute resolution easier, making it possible to avoid a costly lawsuit. Signed documents also offer protection to both parties involved, as they outline the agreements, responsibilities, and rights that both are expected to adhere to. Do this for each business transaction, business agreement, and employment contract–having a paper trail will be invaluable in the event of a lawsuit.
The adage about an ounce of prevention being worth a pound of cure certainly holds true when it comes to business lawsuits. Save yourself and your business the time and money of dealing with them by taking steps to prevent them from happening to begin with. There’s no surefire way to guarantee that you won’t ever be sued, but taking a proactive preventative approach will reduce your risk.
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