When you are running a business that hires employees and deals with third parties such as customers, vendors, and suppliers, it is almost impossible to avoid legal issues. However, the last thing you want as a business is to deal with litigation as it can suck significant amounts of money out of your business. From liability lawsuits to non-compliance issues, there are so many things that can see your company in the courtroom often. However, although legal issues will always exist, you can follow the following tips to avoid the courtroom and solve the problems amicably.
Utilize Written Contracts
Have you ever been sued by a client or vendor with whose you made agreements informally through word of mouth? If so, you should know better than to rely on informal contracts as there is no proof to save you from liability if you are sued. Make a point of drawing contracts for all your dealings. A written agreement validates your transaction and also acts as a point of reference if there is a dispute. This way, no one can claim that you made promises and didn’t deliver as long as the contract is clear on such matters.
Insurance can be your savior in instances that your business is found liable in court. For example, when issues such as accidents at the workplace, discrimination, and public liability arise, it is most likely that the business will have to compensate the affected parties. In this case, you can only rely on your insurance company to cover the legal costs and damages. However, with no insurance, your business may lose thousands of dollars depending on the nature of the lawsuit.
Get all forms of coverage that are suitable for your business. These include workers’ compensation, product liability insurance, professional liability insurance, public liability insurance, and tax audit insurance.
Hire a Business Lawyer
Unless you are a trained legal expert, you may not be able to handle the legal issues in your business when they arise. Hiring a business lawyer can be a great way of keeping your business away from litigation. Professionals, like those at Strauss Troy, know the ins and outs of these sort of situations. Lawyers will help in preparing contracts and ensuring that you don’t set yourself up for legal trouble. They will also ensure compliance with the law, IRS, and the local council. If your business is faced with legal issues, the lawyer can intervene and try to settle out of court. However, if you do go to court, a good lawyer will represent the business and protect its image.
Legal issues will always arise in business. Whether you run a startup, small enterprise, or large business, consider utilizing these tips to protect your brand from being tainted by numerous lawsuits.