Tips to Protect Your Startup from Costly Lawsuits

As a business owner, being sued can be debilitating to your business. That is why you ought to take measures to protect your business from lawsuits, consequently avoiding the possible financial and reputational damage that may be caused. It is essential to avoid lawsuits as it is way easier than fighting them. We have compiled a few tips to help you protect your startup from costly lawsuits.

How to Avoid Lawsuits in Small Businesses

Get the right liability insurance

Having liability insurance covers an array of risks. These risks can range from your employee slipping and falling in your store or office kitchen to a significant data breach. Either way, insurance lowers the chances of you getting sued as there is ready money to pay for losses.

Besides, insurance companies are experienced and efficient at investigating claims and negotiating settlements. Hence, having insurance lowers the chances of being sued.

Have written policies and an employee handbook

It is paramount to have your business policies, rules, and expectations spelled out. Hand them out in a manual or an employee handbook and urge your workers to consider being guided by the policies while working for your organization. For example, these workplace policies may outline when you are liable for an accident and when you are not. The regulations may also stipulate how your staff should carry themselves around at the workplace to avoid accidents.

Hence, in the event an accident occurs, you can provide the company handbook as a defense to show that you had taken the right measures to enlighten them. Besides, the policies can be followed while investigating if the accident occurred within the bounds that compensation should be made.

Protect employees from workplace accidents

Accidents can potentially happen in the workplace or during working hours. According to a personal injury lawyer who provides legal counsel to employees in cases of work-related accidents, it is your duty as the business owner to take care of your employees.

One way by which you can do so is by offering the right working environment. You should, for example, ensure that there are exit or emergency doors at your workplace in case of a disaster that requires fleeing. You should also have all the faulty lines fixed to avoid accidents. You should also have a first aid kit in place in case of an emergency. Taking preventive measures will help you avoid workplace accidents in a way that your workers will not be hurt. That will help avert any related lawsuit that can cost you.

Tip: Again, you can take a workers’ compensation cover that can cushion you against lawsuits should workplace accidents happen.

Be ethical

Your business practices should be ethical, moral, and honest at all times. This helps that you operate fairly, and therefore, you get to avoid discrimination lawsuits from employees. The workplace policy should also be free of any discrimination so that your employees and clients should be treated fairly and honestly. Hence, it is required that the operations of the company be executed professionally at all times.

Separate your business from yourself

It is essential to incorporate your business. In so doing, you get to separate your business from your finances and, consequently, from any liability related to your company. In the event of a lawsuit and settlement, the finances won’t be collected against your personal assets.

Final word

A lawsuit can be expensive for your business. It can also destroy the reputation of your business. Hence, it is cheaper to avoid one than fight it. Always ensure you work to prevent lawsuits, preferably with the help of a skilled attorney and some of the tips we have covered. More information about dealing with personal injury accidents you can find at, a useful online resource.

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About Dequiana Jackson

Dequiana Jackson, Founder of Inspired Marketing, Inc., helps overachieving women entrepreneurs conquer limiting beliefs and create marketing plans that win. This includes one-on-one marketing plan development, digital product creation, web design and content marketing. Dequiana is the author of Know Your Business: How to Attract Ideal Clients & Sell More and runs the award-winning blog,

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