Each year, between 35% to 53% of small businesses in the U.S. are hit with a lawsuit, according to the Small Business Administration (SBA). Here we’ll cover three of the most common sources of court and conflict for businesses we work with. By understanding the causes of potential legal trouble, you can take the necessary steps to prevent disputes before they occur.
1. Lawsuits By Employees
Nearly one in every five small businesses will get sued by a team member. The most common lawsuits arise when a team member needs to be let go, and he or she feels mistreated (rightly or wrongly) in the process. By working with us, you can dramatically reduce your chances of getting sued for employment-based claims—or reduce your out-of-pocket costs if you do get sued due to no fault of your own. From creating sound employment agreements, advising you on the appropriate insurance coverage, and helping you establish workplace policies and procedures in compliance with federal and state laws, we can support you in every aspect of employment law matters for your business.
2. Lawsuits by Clients or Customers
The way you present your client or customer agreement, what it says, how it says it, and how you get paid and handle customer complaints, can mean the difference between an unhappy customer, who you can turn into a future raving fan, and an unhappy customer, who ends up suing you. We help our clients turn client or customer complaints into learning and growth opportunities, and head off future problems by creating template agreements and offering training on how to present those agreements for the best possible outcome of a happy, paying client. You’re much better off paying a little more upfront to create a thoroughly protective agreement and learning how to present it so it sets up your client and customer relationships for success, rather than trying to save a few dollars by downloading a do-it-yourself agreement online that won’t keep you out of court and conflict.
3. Lawsuits for Third-Party Injuries
If you or one of your team members is injured on the job, that’s typically covered by worker’s compensation insurance. But if a client, vendor, or another third-party is involved in an accident in your place of business, you can be sued for negligence, often known as a “slip-and-fall” lawsuit. If you allow members of the public onto your property, you have a duty to provide for their safety. If a visitor to your business can prove that you didn’t take the proper precautions and he or she is injured as a result, that individual can sue your company to pay for their medical bills, lost wages, and even their pain and suffering. Depending on the severity of the injury, personal injury claims can be among the most expensive of all types of litigation.
Your primary defense against personal injury suits is to have adequate liability insurance coverage in place. We’ll recommend the best types and amounts of liability insurance for your business operation. Meet with us to discuss your specific coverage needs.
Your Very Own In-House Legal Counsel
Meet with us to discuss the specific legal safeguards you should have in place. Whether it’s investing in the right insurance coverage, reviewing and updating your agreements, or helping you navigate the complexities of employment law, we always have your back. Contact us today to learn more.
AB Law, PLLC is a full-service business law and estate planning firm that serves clients throughout Texas. All consultations are free and no question is too silly, ridiculous, or complex. https://calendly.com/ablawpllc www.ab-firm.com