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Lawsuits can be costly for businesses. They can also damage a company’s reputation, making it difficult to attract new clients. All kinds of people can file lawsuits including customers, employees or suppliers – and they can file lawsuits for all manner of reasons ranging from injuries in the workplace to failure to deliver promises. Here are just five ways in which you can defend yourself against the most common lawsuits.
Have legally binding contracts in place
Contracts can help to put an agreement in writing. This then gives hard proof that you and another party have come to a mutual agreement over certain criteria that must be met. Such contracts can prevent people suing you for things that you didn’t promise. You may even be able to warn against certain dangers in the contract. These contracts should be written up by a professional so that they’re legally tight and so that the wording cannot be misconstrued.
Invest in health and safety and security measures
Many lawsuits are the result of injuries or loss of property/data due to crime. These incidents can be avoided by taking thorough health & safety and thorough security measures. In terms of health & safety, you could consider signage and protective equipment. In the case of security, having strong security software and a burglar alarm could be important. CCTV can also prevent lawsuits by warding off criminals and catching cases of fake personal injuries.
Train your staff thoroughly
Training your staff thoroughly can also reduce lawsuits. By training employees in health and safety, you can reduce workplace injuries and hence prevent personal injury lawsuits. Meanwhile, general training may be able to prevent serious cases of malpractice that could result in lawsuits from customers.
Hire professional help to resolve conflict
You can sometimes prevent lawsuits by spotting early signs of conflict and resolving them as soon as possible. There are professionals who you can call upon to resolve conflict for you such as Judge Diane Ritchie. Legal advisors may also be able to help you when wording emails directed at angry clients or employees, so that your words can’t be used against you.
Take out insurance
You can insure yourself against many forms of lawsuits – whilst this may not prevent lawsuits from happening, it can help to pay the compensation and reduce the costs for yourself. Employer’s liability insurance is a compulsory scheme for those that have employees and can help to cover the cost of personal injury lawsuits filed by employees. Other forms of insurance to consider include professional indemnity insurance, public liability insurance and product liability insurance. You probably don’t want to take out too many insurance schemes – not only will it be costly, but it could get confusing. General business insurance schemes exist as offered by companies like Hiscox which can cover you for various threats. Always shop around to try and get the best deal.
