Lawsuits could cost your company a lot of money. On top of this, getting sued isn’t good for your reputation as a company and may result in negative media attention. To help defend your business against lawsuits, here are some of the steps that you can take.
Lawyer up
The best way to cope with lawsuits – and to prevent them from happening in the first place – is to have a lawyer on call who you can depend on when the time comes. Lawyers may be able to deal with issues such as employee injuries as discussed here http://www.kmhlawyers.com/practice-areas/workers-compensation/, helping you to deliver adequate compensation for the employee in a timely manner. They may also be able to help you deal with difficult clients, possibly responding to complaints to help avoid lawsuits.
Get insured
Several types of insurance can offer compensation in the event of a lawsuit. Errors and Omissions insurance is a common form of insurance used to offer compensation against claims of negligence – you can read more about it at https://www.investopedia.com/terms/e/errors-omissions-insurance.asp. Other schemes like product liability or public liability can also be useful for some businesses. Being insured won’t stop you from getting sued, but it reduces the costs.
Invest in health & safety/security measures
Injuries and data loss are common sources of lawsuits. The best way of defending yourself against such lawsuits is by reducing the threat of injuries and data loss. Supplying safety equipment for employees and installing guard rails and anti-slip mats are common health and safety measures while investing in good anti-virus software or outsourcing IT support are good security measures. You may also be able to signpost dangers such as putting up wet floor signs when mopping.
Train your staff thoroughly
Lawsuits as a result of negligence are less likely to happen if you and your staff are trained thoroughly. Make sure that all new employees are trained to a proficient level so that they’re not making silly mistakes. You should also offer refresher training for older staff to ensure that they’re still doing things correctly. Supplying a handbook and offering eLearning could prevent you from having to do as much hands-on training yourself. You can find out more about eLearning here https://www.elucidat.com/blog/employee-training-program/.
Be careful what you say and promise
Saying the wrong thing can also get you into legal trouble. Certain comments against an employee or customer could be seen as discrimination or harassment, so it’s important to be careful when faced with situations involving conflict. You should also avoid making promises that you cannot keep. A false promise could be interpreted as negligence – so always be realistic with clients about what you can help them achieve. This is particularly important with written promises, which can easily be used as evidence.
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