5 Ways to Protect Your Business from Being Sued

Running your business is hard enough just dealing with daily tasks, but if you don’t protect your business from being sued, your business may not be running at all.

5 Ways to Protect Your Business from Being Sued

As a business owner one of your top priorities should be to protect your business from being sued.

Sadly, it’s something that many don’t think about until it happens.

Limiting your company’s risk of being caught up in a nasty lawsuit is never going to be an easy or straightforward task. What with the huge number of people out there trying to claim their way to a pretty penny, your organization will always be a sitting duck for fraudulent claims. Throw in the fact that individual errors from your workforce can result in genuine claims being processed, and your safeguarding task gets ten times harder.


To protect your business from being sued, you can’t leave anything to chance — you have to be proactive in the way you prepare for claims and deal with them when they are made.

For more details on how to protect your business from being sued, make sure to read on.



1. Be cautious when it comes to your own actions


The best way to avoid being sued is not to do anything wrong; it’s as simple as that.

Granted, accidents do happen, but there are also factors that you can control in this instance, the biggest being the words you choose to speak and the actions you choose to take. Say or do the wrong thing at any time, and your business could instantly find itself linked to unsavory or even criminal behavior. By being linked to such behavior, your business will find it harder to fight lawsuits in the future — what leg would you have to stand on when your reputation gives the courts cause to believe the claimant over you?


Quite simply, you have to avoid making libelous and slanderous statements at all costs.

You also need to avoid going into business with individuals of an unscrupulous nature.

Above all else, just stay on the right side of the law.

Doing so will keep your good reputation intact, which will ultimately help you to fight lawsuits should you need to going forward.



2. Take out insurance


To ensure that your finances don’t take a hit, for example, should somebody slip and fall on your premises, it’s imperative that you take out insurance. Liability insurance, in particular, is a type of cover that you need to take out at all costs. With this kind of coverage, you can rest assured that no matter what accidents take place in your workplace, whether they’re genuine or not, you will never be left out of pocket.


You might also want to consider obtaining errors and omissions coverage. This kind of insurance will protect you should a customer claim that you have made an error or not lived up to your contractual agreement. This type of cover is perfect for insurance agents and legal consultants.



3. Keep your records up to date and accurate


Should somebody attempt to sue your business, you’re going to need to compile as much evidence as you can to prove your innocence. Up-to-date and highly accurate records will do the job in this instance.


If you have signed documents, files, and agreements to fall back on, you will make it difficult for anybody to prove your wrongdoing. The types of records you should keep specifically include:




4. Draft up legal contracts


Drafting up legal contracts in the future is just as important as keeping records of your past. This is because, by having such documentation drawn up for you whenever you embark on new agreements with new customers, you will protect yourself should the relationship turn sour.


With official documentation that has been signed by both parties, you will improve your chances of avoiding legal disputes — should you, in fact, find yourself embroiled in a lawsuit, you will also find it easier to protect your interests. It is well worth, then, getting in touch with an attorney that will be willing to draft and sign legal contracts for you.



5. Work with genuine claimants, not against them


If a person has a genuine reason to claim you, it’s imperative that you work with them, not against them. No matter how much you may have to swallow your pride to do so, working to ensure that genuine claimants get what they deserve from whatever situation has befallen them will no doubt be better for you in the long term.


Because showing that you are committed to seeing justice be done, even though you are in the wrong, will depict you in a more favorable light with the courts. Ultimately, even though it may land you with a fine, acting in such a helpful manner will help you to avoid being sued.


Aside from that, if somebody genuinely does require compensation to cover for their missed wages as a result of a mistake on your end, who are you to deny them of it? Work with the claimant and even get them legal cover should they need it — for premises liability and personal injury cases especially, Friedland & Associates more than fit the bill. By doing so, you will be able to rest in the knowledge that you’ve acted ethically, honestly, morally and, above all else, that you’ve done the right thing.




If there’s one thing you want to avoid in the world of business, it’s being sued. Even if you were to win your lawsuit, simply being involved in it will do nothing for your reputation going forward. Why would customers choose you over your competitors when they have a squeaky clean status and you, well, don’t?


When it comes to protecting your business from being sued, the above advice is paramount. You need to be on the side of caution when it comes to your own words and actions, cover yourself with whatever insurances are suitable for you, and you must keep your records up to date and accurate at all times. As well as that, you must draft up legal contracts whenever you enter into new deals, and act ethically and morally to support genuine claimants. Do all of the above, and you’ll be sure to keep your business well away from nasty lawsuits.