Did you know that entrepreneurs are facing more lawsuits than ever before? Conservative estimates state that lawsuits against small businesses have risen by 80% in the last 20 years. Entrepreneurs are increasingly finding a need to protect themselves from lawsuits.
While most experts agree that lawsuits can be unavoidable, many small businesses are falling victim to easily avoidable lawsuits.
That’s why Newark Attorneys, DSS law Firm, are driving to educate entrepreneurs on how they can protect themselves from the most easily avoidable lawsuits.
Incorporate Your Business Officially
Many entrepreneurs put off incorporation until they’re successful. However, in the meantime, Newark Attorneys state that if you’re sued before incorporation your personal assets could be at risk.
Incorporation may be a hassle in the beginning, but it can protect your livelihood later. Business experts recommend incorporation as it comes with an array of benefits, including reduced tax rates in many states.
Comply with Local Laws on Working Conditions
Simple injuries and minor issues at work can spiral into huge lawsuits if the business owner didn’t take steps to comply with local laws.
Every state differs when it comes to laws relating to minimum working conditions. Consult a legal expert when you open for business to ensure you aren’t making basic mistakes that could come back to bite you later.
Take Employee Complaints Seriously
Workplace harassment lawsuits are growing at an incredibly fast rate. The number of harassment lawsuits in 2018 grew by 50% and legal experts put this down to the willingness of victims to speak up and come forward.
Victims may decide to take action against the perpetrator, but they’ve also demonstrated a willingness to go after businesses that ignore complaints.
If you receive a complaint from an employee, you can protect yourself simply by doing the ethical thing and taking it seriously.
Draft Agreements with Customers and Businesses
Another of the most common lawsuits stems from not setting out clear expectations and responsibilities prior to doing business with customers and businesses.
Newark Attorneys, DSS Law Firm, highly recommend that having an agreement drafted by a legal expert can protect your interests if a third-party takes legal action against you.
This doesn’t need to be a difficult or expensive process.
Enhance Your Customer Service
Businesses encounter upset customers on a regular basis. How you handle these situations may determine whether the customer walks away or files a lawsuit. Even a frivolous lawsuit can cost you dearly.
Investing in customer service now can prevent irate customers from coming after you later, according to legal experts.
Lawsuits Can Destroy Your Business
Fighting a lawsuit can cause considerable disruption to your business. Third parties operating on emotion may not win the lawsuit, but the expenses and the time can stop a small business from growing and succeeding.
Every business in the US will experience legal action of some kind at some point. The currently documented averages and the willingness for people to instantly sue if they experience a problem makes this a certainty.
But with appropriate protections and policies in place, entrepreneurs can limit the damage and disruption.