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Enjoy Your Business and Avoid Lawsuits

December 13, 2021

Posted in Blog

Enjoy Your Business and Avoid Lawsuits. As a small business owner, you are usually wearing different hats. You are worried about cash flow, sales, employment, and many more. I know that handling a lawsuit is not on the plans of any small business owner. However, the reality is that most likely, you will face a lawsuit in your business sooner or later, and the financial impact can be overwhelming.

Small businesses must be protected against lawsuits with the correct business insurance and the help of a business attorney. Apart from financial consequences, a lawsuit can harm your business reputation and stress your employees and business partners. Even when a business can receive lawsuits from any person or entity, the most common sources of lawsuits are their employees and customers. This is because these two groups are the ones that are more connected to the business and are expecting something from it.

Starting with employees, if an employee feels satisfied, well-compensated, and happy with the company, this person will stay on good terms with the business. On the other hand, if the employee feels unhappy and mistreated, they will sue the company. The most common types of employee lawsuits are:

  • Wage and salary violations
  • Workplace harassment
  • Discrimination of some type
  • Employee injury as a result of employer negligence
  • Wrongful termination

Customers may sue a company for different reasons. They might have felt like they didn’t get the promised product, or maybe they got injured on the company’s premises. These are the most common reasons why a customer sues a company:

  • DiscriminationEnjoy Your Business and Avoid Lawsuits.
  • Having a hidden camera in a bathroom
  • Personal injuries on premises
  • Refusal of service claims

After knowing this, how do you reduce the threat of a lawsuit? First, minimize the financial perils. Incorporate your business in a way that shields your finances from your company’s finances. Good insurance can protect you from a range of potential claims against your business.

Be very careful with what you promise. Do not over-promise or make false claims about your business or your products. Avoid making specific claims about your products or services that can be disputed. Make sure you are legally protected and working alongside a business lawyer. The lawyer should be the one you reach out to if potential legal problems arise.

If you are ever sued, take the following steps to improve the outcome of your business. First, call your lawyer right away. A business attorney knows better than anyone in this case. Contact your insurer and stay calm. If you need a business lawyer to help you Call us now for a Strategy Session or book your appointment by clicking here. We are an established and growing law firm that specializes in business litigation matters for businesses located in California and the Pacific.