3 Small Business Legal Issues You Should Address

Meghan Belnap

March 17, 2015


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Small businesses have many things to be concerned about today. One of the most important concerns should be common legal issues. Small business owners are vulnerable to several legal problems. You need to be proactive in order to reduce the risk of lawsuits and other legal actions. You should address three small business legal issues right away.

Premises Liability

Small businesses with storefronts or public offices need to address the issue of premises liability. This legal issue means you can potentially be held responsible if a person is injured while on your property. The person could slip and fall, be hit by a falling box or be cut by something sharp protruding from the wall. You could be found liable if there were puddles on the ground, ice on the steps or unsafe equipment in the open. You are legally required to take reasonable precautions in order to create a safe environment for anyone coming onto the premises. It is important to address premises liability in order to prevent unexpected lawsuits that could cost you a significant amount of money.

Harassment

Another legal issue small business owners must address is harassment. This could be sexual, psychological or physical harassment in the workplace. It can occur between managers and employees, between coworkers or even between workers and customers. Harassment claims can lead to complicated litigation that lasts a long time. It can create public relations and branding problems. Your business might even be held responsible for the harassment and then forced to pay the accuser. You can address harassment by instituting clear workplace policies and enforcing them strictly. Installing security cameras in the workplace to capture interactions will help as well.

Workplace Injuries

Workplace injuries can become legal nightmares. These are injuries your employees sustain while performing work-related duties for your small business. Some injuries might be covered by workers compensation. This type of mandatory insurance will pay for medical bills and lost wages while also preventing a lawsuit later. Your premiums will go up after injuries occur. Alternately, your employees might decide to deny workers' compensation and file a personal injury claim that could be expensive to resolve. You need to take every precaution possible to ensure that the workplace is safe for every employee. Maintaining a safe and healthy workplace can make injuries far less likely.

The worst thing you can do as a small business owner is to sit back and wait for legal issues appear before reacting. You need to understand what liability and other issues you are facing on a daily basis. Taking action now to mitigate the risk of legal problems can save your business from destructive lawsuits in the future.