The business world is filled with lawsuits nowadays, and protecting yourself is a key skill for staying afloat. The average lawsuit a small business faces (across the country) can be in the tens of thousands, with some of the worst cases going above $100,000. No company wants to incur unexpected expenses, and some just outright can’t afford it.
Let’s take a look at what sparks negligence or liability lawsuits:
- An accident that could have been reasonably prevented
- A situation you were informed of that led to a negative situation
Basically, any event that can reasonably be linked to common human error can lead to thousands of dollars in restitution. If you want to say safe, here are some easy guidelines to follow.
Professional Liability Coverage
We bring this up first because no one is above mistakes. Even the most well-meaning business owner will trip up once, and that can be enough to bury your company in financial debt. Get started here with professional liability coverage.
Secure Your Assets
The court can assist lawyers in coming after your physical property and even the money in your bank account. There are several things you can do to protect these items before a lawsuit comes to your door:
- Put funds into a retirement account – These are generally protected by law, so you can rest assured the funds will still be here.
- Form an LLC – A Limited Liability Corporation is set up just for cases like these. It limits your personal involvement with the company while still maintaining some control.
- Real Estate Protection Laws – Investing in your real estate can protect your money in the event of a lawsuit. Your money will be safe invested in your mortgage as the creditors cannot take your home away from you.
Contractual Protection
The law is black and white. So, if you move the liability from your company to another in specified cases, this can protect you down the road.
For example, if you own a business in a small shopping mall, then you could already be protected in the event someone slips in snow outside. Senior citizens are more at risk for these situations. Check with the property’s owner for who is liable in this case.
In these cases, insisting on written contracts to make sure lawsuits find their intended target is your best bet. That way, if something unfortunate happens, the court can read your contract and absolve you of liability.
We hope you never have to deal with a lawsuit, but the reality is that small businesses face these threats daily. Learn to protect yourself from these guidelines and practice everyday safety. There are hosts of manuals, pamphlets, and safety guidelines out there for risk management in any business. Taking the time to learn these cases will give you the knowledge and surety to get yourself out of uncomfortable situations in the future.
EZ.Insure is here to help you make the best decisions for your business. Your agent will answer any questions you have, compare different plans for you, and even sign you up when you’re ready, free of charge and without having to worry about being hounded by endless calls. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing [email protected] or calling 888-615-4893. EZ.Insure makes the entire process easy, and quick.
