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How to protect your small business from lawsuits

On Behalf of | May 20, 2019 | Employment Litigation |

As a small business owner, you have most likely worked hard to create a working environment that is friendly to all employees. After all, having happy and loyal employees is key to business production and efficiency. The last thing you want is to be put in a situation where you are fighting a lawsuit for an otherwise preventable issue. Lawsuits can harm your business’s reputation and compromise a smooth working flow. You can minimize your risk of getting sued by following a few simple rules.

First, make sure you provide proper training for your employees, including a written form that outlines all rules and responsibilities of the job. Be sure sexual harassment training is provided for all employees. Watch what you do and say as an employer. You should avoid situations where a conflict of interest may occur, as this can lead to a lawsuit. Avoid speaking or making statements in public regarding your business.

Make sure you have liability insurance and appoint a trustworthy attorney who can represent your business if a lawsuit is filed. When finding an attorney, be sure to choose one that specializes in your area of interest.

Always try to separate your personal finances from that of the business. Do not intermingle your money with company expenses, as this allows the court to come after your personal finances if a lawsuit is filed. By incorporating your business, it protects your personal home and assets from attack in the judgement. Finally, make sure that your business files are always protected with security software and update antivirus software.

This information is intended to educate and should not be taken as legal advice.




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