How Your Business Can Avoid Lawsuits

No business owner wants to deal with the headache and expense of a lawsuit. But unfortunately, even the most well-meaning businesses can find themselves on the wrong side of the law. The good news is that you can take steps to help avoid legal problems before they occur.

One of the best ways to protect your business from lawsuits is to be proactive about risk management. This means taking steps to identify and mitigate risks before they result in legal action. You might perform regular safety audits of your workplace, implement policies and procedures to reduce the chances of mistakes, use antivirus and other cybersecurity methods to protect digital information, and stay up-to-date on changes in the law that could affect your business. The specific actions you will need to take depend on the type of business and other factors. However, there are things every business owner should do to reduce the chances of lawsuits.

Proactive Measures to Prevent Problems in the Future

One of the first steps in preventing legal problems in the future is to look to the past. Has your business experienced legal problems or disputes in the past? What led up to those issues? For example, do you have recurrent human resources problems or regulatory concerns? What can be done now to prevent issues like these from arising again?

Next, look to your business contracts. Poorly executed contracts are a major issue in small and mid-sized businesses that can cause seemingly endless problems. No one wants to get trapped in a contract that is not working for them. Contracts should always be carefully reviewed for inaccurate information, vague terms, or missing provisions before a business agrees to them. There should always be a method for determining if both parties to a contract are following through with their responsibilities.

In today’s digital world, cybersecurity is more important than ever. Protect your company from lawsuits by training employees in security principles, using security software and firewalls, and controlling who can access confidential digital information.

Businesses can also protect themselves by obtaining liability insurance. This type of insurance can help cover the costs of legal action taken against your business. Make sure you understand the terms and conditions of your policy, as well as the limits of coverage, so that you know what is and is not covered.

By taking proactive measures to prevent legal problems, you can save your business time and money in the long run. Investing in risk management now will pay off in the future.

Call Us for Help

Outsourced general counsel services can help your business identify and mitigate risks so that your chances of being involved in a legal dispute are as low as possible. At the Gierach Law Firm, we know that many small and medium-sized businesses do not have the need or the budget for full-time, in-house legal counsel. Our outsourced general counsel program, YourOCG, offers a cost-effective solution for businesses that need high-quality legal advice and guidance but cannot justify the expense of a full-time lawyer. Our YouTube channel is also a valuable resource for business owners.

Our experienced Naperville business law attorneys can provide the guidance you need to protect your business from legal problems down the road. For more information about how our outsourced general counsel services can help your business, call us today at 630-228-9413. You can also contact us online to schedule a consultation.

Sources:

https://www.investopedia.com/small-business/protect-small-business-getting-sued/

https://www.travelers.com/resources/business-industries/small-business/how-to-protect-your-small-business-from-a-lawsuit

https://www.fcc.gov/communications-business-opportunities/cybersecurity-small-businesses