Anica Oaks
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4 Easy Ways Businesses Can Reduce the Risk of Being Sued

Anica Oaks

November 20, 2017

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Starting a business is an accomplishment, but it can have its ups and down. One of the challenges you are most likely to encounter is lawsuits. A country like the US is notorious for its increasing number of lawsuit cases.

The US Legal system is engineered to accommodate anyone who feels maligned or victimized. Such people can easily seek justice. More than 100 million lawsuit cases are filed in the U.S. every year. However, your business can work to avoid lawsuits if you follow these simple steps.

Ensure that Your Business Is Incorporated

Starting a business is very easy. However, running a business that is not incorporated can make you personally liable for injuries. However, incorporated businesses protect the business owner.

An incorporated company is considered an independent body. Therefore, in case of a lawsuit, the court will only go after your business’ assets, leaving your personal finances and property intact.

Ensure that Your Contracts Are Legally Drafted

Hiring a lawyer when starting your business is something that many people overlook. Lawyers are familiar with the law. Therefore, they are the go-to people if the law is unclear to you.

Lawyers will advise you on matters to do with the business. They also come in handy if you are planning to do business with another company. Competent lawyers will advise you on the need of drawing up a contract that will offer your business protection.

Have an Insurance Coverage

Having liability insurance coverage will help cushion you from any financial consequences that may come as a result of a lawsuit. Insurance companies provide a wide range of options, such as errors and omission insurance, which is helpful in case you make a mistake.

Slip and fall accidents happen often on business premises, but most people overlook them. States like Texas lean more on the side of the business. However, some lawyers have taken up the fight to protect the rights of customers. Make sure you keep your business property well-maintained, with easily-visible signs to denote any potential dangers to workers and customers. Otherwise, you may have to content with a personal injury attorney in court.

Maintain Your Business Image

Be careful about what you say and how you treat people around you. Make your business premises customer- and employee-friendly. When it comes to doing business, involve yourself with people of integrity.

The level of exposure determines the risk of lawsuits on businesses. Businesses with a physical location are more prone to lawsuits as compared to online businesses. However, adhering to rules and regulations and safety measures can reduce your chances of facing a suit.


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