5 Easy Ways to Protect Your Business From Lawsuits

Subject: 5 Easy Ways to Avoid Being Sued


I have talked a lot recently about the top things businesses do that result in lawsuits and the top reasons businesses lose their cases.


I think it is also important to highlight the easy ways businesses can proactively protect themselves from lawsuits.


1.      Make sure your business is in a corporate form. Whether you are a corporation, a limited liability company or a partnership, make sure you speak with an attorney about the right way to protect yourself. While being in a corporate form will not prevent someone from suing the business, it will protect you personally from being liable for the acts of your business (as long as your business acts in the correct corporate manner).


2.      Get Insured. Insurance will not keep you from being sued, but insurance can keep you from the financial consequences of being sued. Lawyer fees and legal liability in terms of damages can be paid by the insurance company. Two of the more common insurance products for businesses are general liability insurance if someone gets hurt in your business or because of your business. There is also errors and omissions insurance if you make a mistake in your business. Also, get proper insurance for any vehicle that is used in the course of your business. Talk to your insurance broker about which insurance product(s) is the best for your specific business.


3.      Proper Contracts. Hire an attorney to draft and/or look over your contracts to make sure you are adequately protected.


4.      Watch what you say. Representations and warranties made about your product or service must be accurate and well defined. To avoid being sued, all your representations and warranties should be specific and in writing. You should not make any additional representations or warranties. It is safer to under promise and over perform. The opposite often results in lawsuits. Also, be careful with what you say about anyone else. Negative statements that cannot be supported may lead to lawsuits for defamation.


5.      Keep Excellent Records. Keep records of all interactions with customers, especially if you made promises to the customer. This also prevents the customer from saying that you promised X when you actually promised Y. Remember to also keep records if a customer decides on a cost cutting choice or any choice that may have some drawbacks to them down the road. Also, keep records if something unusual happens, like if someone was hurt.


Thank you for reading, my business is to protect your business!


Watch the video above to learn more.

I would love to talk more about your business. Click here to schedule a time to talk.