How to Protect Your Small Business from Liability Lawsuits

Many small-business owners stress about what will happen if they are ever presented with a liability lawsuit. This is an understandable worry, but setting yourself up for safety from the beginning means that you know you’ve done everything you can to protect yourself. Here are some top tips.

Be Careful of Your Words and Actions

All your public words, announcements, and interactions are part of your image. If anything might be considered questionable, steer clear. Don’t engage in potentially slanderous conversation and stay away from business dealings with unsavory people. Listen to your intuition above all else.

Protect Your Personal Assets

If you’re a sole proprietor and you get sued, then the claimant can go after your personal property, including your car(s) and home(s). This possibility is lowered if the business is put into a trust, which is an entity that files its own taxes and owns property separate from the business owner. This means that only business-specific assets can ever be attacked in court. You could also incorporate your company, but this means that you have additional reports, taxes, and laws to follow.

Insure Your Business

Holding liability insurance means that if something happens, such as a slip, fall, or other accident, your insurance will cover the damages as opposed to you having to pay out of pocket to the victim. Liability protection could also be a part of any contracts you write with your clients.

Keep Your Files Protected

Most of your information is probably on a computer or other electronic system. You not only need to have these backed up, but they also need to be safe from hackers and other online threats. Make sure you’re set up with antivirus and security software as well as a regular backup system.

Retain an Attorney

No matter how careful one is, sometimes unfortunate situations occur. Having an attorney already hired and on retainer means that you won’t have to waste precious time searching for and interviewing someone who you want to help you. A lawyer can help advise you on all steps, especially if they are local and familiar with particular laws for your area and industry.

You’ve put your heart and soul into your small business, building it from the ground up. Part of a business owner’s job is to protect their company from liability lawsuits. This takes knowledge and know-how that most small business owners don’t have. Reaching out to Grewer Law Group for a consultation can get you set up to protect your business, your assets, and your future.