Tips to Protect Your Business from Litigation

A lawsuit can destroy a company’s credibility and even result in bankruptcy if it is serious enough or expensive enough to fight. As such, it makes sense to protect your business from litigation as much as you possibly can. Here are a few things you can do to keep your business on the right side of the law.


1. Perform Background Checks on All Employees

While you have control over the way you conduct yourself, it is not possible for you to watch your staff 24 hours a day, 7 days a week. Therefore, it is important to hire a team that are trustworthy, loyal and professional in their manner.

It is your responsibility to make sure that the people you employ have been properly vetted. So make sure you perform background checks on all your employees before you hire them. If you fail to do this and someone is injured by them on your premises then you could be liable. Vetting them protects both your customers and your business from any problems.

2. Get Proper Business Insurance with Liability Coverage Included

While you might think of insurance as just another monthly expense, you should also think of it as an investment. It is good to have general coverage to protect any business assets but liability insurance is every bit as important.

Liability insurance will cover you in case anyone is harmed on your premises or if there are any problems with your service or products.

3. Use Contracts for Customers, Colleagues, Partners and Employees

Drawing up contracts can seem to be a lot of work, but they make things clear for everyone. For example, they help employees to understand what is expected from them, what their pay is, their holidays and their duties.

Contracts can also stop litigation in its tracks and help avoid long drawn out court cases. When everything is in writing, everyone knows where they stand from the start. There is less chance of confusion when it comes to delivery dates, product details and services offered.

However, contracts need to be properly worded and clear. To ensure contracts are legal and avoid issues down the line, it is a good idea to get contracts drawn up by an attorney. Contracts are an important tool to help you protect your business from litigation.

4. Ensure All Computer Files Are Protected

These days we rely on computers more than ever. However, while they make our lives easier, using them does involve a certain level of risk. Some of those risks include computer malware and viruses, technical issues, software and hardware issues.

Back up your files to ensure that your files are protected and you can always do your work and contact your customers. Put them on separate disks or USB drives and keep them off the premises when the office is not open.

Keep all computers protected by passwords and install virus and malware protection on your machines. Failure to meet deadlines because of computer issues could land you in court, so be prepared and professional.

5. Stay Organized

If you have premises, ensure that they comply with safety standards. Ensure any trip hazards have signs, and keep working areas tidy and free from clutter.

Ensure all cleaning or maintenance is done when the premises are closed and make sure you have all adequate licences and paperwork in place. If you want to ensure that you have everything in place to protect your business from litigation then contact a personal injury attorney.