Compared to larger companies, small businesses have a much lower risk of being sued. However, it is still important to know that small businesses still have a risk of being sued, either by employees, customers, or another business. Kinney Fernandez & Boire, an industry leading law firm in Florida, helps to uncover the causes of how some small businesses get sued:
- Employer negligence – some employers do not maintain their facilities as well as larger companies. Poorly maintained facilities can lead to issues like employee injuries or even deaths.
- Copyright problems – some small businesses think that they can get away with stealing a patented or copyrighted logo, idea, or other form of intellectual property. At some point or another, individuals and other businesses tend to notice this and file a lawsuit against the small business.
- Failure to comply with agreements – startups may offer claims for their customers or suppliers in exchange for something that benefits them. Unfortunately, when these promises are not delivered, it can lead the opposing party to file a lawsuit.
These are only a few of the ways even a small business can become embroiled in a costly lawsuit. Kinney Fernandez & Boire gives us an outline of how you can protect your small business from being sued.
Four Ways to Protect Your Small Business From Getting Sued
- Be careful of your company’s actions and statements
A lot of small businesses, especially if they’re first gaining traction, tend to be opinionated about certain issues. In this scenario, it is important to be careful of what your company represents through its branding and its employees. Be careful of statements that may put your company at risk. A good example to follow is to add disclaimers about a product or service you are offering. Media companies would also add statements such as “host views do not necessarily reflect the company’s opinions”. The same principle applies to how you choose to market your company. For example, Kinney, Fernandez & Boire would not market themselves with the term car accident attorney Tampa if they lacked competency in car accident suits or the regional laws of Tampa. These statements help protect your company from being sued by other people who would be otherwise offended or harmed by your actions or statements.
- Hire a qualified and reputable company attorney
Another important step to prevent your small business from getting sued is to hire a competent attorney. Attorneys are a powerful tool to have in your arsenal in the event of a lawsuit. In most cases, attorneys will specialize in a particular claim or area such as a slip and fall attorney in Tampa. This specialization gives them a tremendous advantage in the courtroom. Additionally, they can provide legal advice about how you can deal with potential lawsuits and bounce back gracefully without harming your business’ reputation and revenue.
3. Have insurance for your company
Another way to protect your business against a lawsuit is through preparing ahead. This can be through company insurance, where the insurance company will be willing to pay damages for any claims if the opposing party decides to pursue a settlement. Having an insurance policy for your small business can help you succeed and avoid debt just in case a potential lawsuit is filed in the future. This will also help you prevent financial losses that may happen in such an event.
- Commit to integrity in all aspects of your business
Although integrity is an abstract concept, it should go without saying that it must be weaved into the fabric of your small business. The way you present yourself as a company, the values you stand for, the mission and vision you want to attain should all be built on the foundation of integrity. Be sure that this is clear to yourself, your employees, as well as your customers. Knowing that these are the values you uphold for your business, it will be easier for you to lead your team towards good business practices that will prevent you from getting into harm’s way.
Small businesses are not spared from the potential of being sued. However, these four great ways can help entrepreneurs to succeed in their endeavors with minimal to no legal business complications.
