6 Tips for Protecting Your Small Business from Lawsuits

Business owners take on myriad responsibilities, one of which is ensuring that the business remains safe and secure, and operates smoothly. While no business owner wants to be faced with a lawsuit, they unfortunately aren't uncommon. Lawsuits can be time-consuming and expensive, but more importantly can damage the reputation of your business. But how do you limit or dodge the possibility of one?

Recognized entrepreneur and founder of LaBov & Beyond, Barry LaBov provides advice on avoiding a lawsuit and recommends the following steps to protect your business.

Create an Employee Handbook

You should have an employee handbook that details company policies, including vacation and sick days, maternity leave, sexual harassment, non-discrimination, equal employment, worker's compensation and termination. All employees should be given a copy, should read it, and sign it. Their signature indicates that they are aware of the business's policies and agree to adhere to them.

Document Everything and Keep Files

You should keep files and copies of important information such as signed contracts or agreements. Also, it's wise to save emails of conversations regarding business arrangements or memos, and any other files, writing, or electronic documents that record an important event. Nothing is better at preventing lawsuits than documents that can be used as evidence.

Be Cautious of What You Say and Do

Business owners as well as employees need to be careful of any public announcements or comments that they make that may be questionable or sensitive to another worker. Avoid making any slanderous statements or jokes that may be considered discriminatory. 

Keep Your Business and Personal Assets Separate

Keeping your business assets and personal ones separate ensures your protection. Should your business have to file for bankruptcy or face a big lawsuit, you won't lose all of your personal money during the process.

Safely Maintain your Business Property

Slips and falls happen, but if they occur in the workplace and someone is badly injured, that employee may make a claim and sue. You can prevent accidents of this sort from happening by maintaining a clean and well-kept facility or office and notifying employees when and where to be cautious if there is a spill, a cleaning, or any other potential hazard. 

Communicate to Clear Up any Misunderstandings

Remember that not all issues or discrepancies have to result in a lawsuit. A great preventative measure is to simply speak to the individual about the matter and clear up any misunderstandings. Doing this can save you time, money, and a bad reputation.