Lawsuits are one of the reasons so many small businesses fail in this country and getting hit by just one can be enough to sink your whole operation. This is why you need to know the main reasons for lawsuits and take the steps necessary to avoid them. The good news here is that avoiding lawsuits is possible when you understand your industry and make compliance a priority. Let’s take a look at a few simple tips for avoiding lawsuits as a new business.
Make Sure that Your Employees Are Trained Properly
A lot of lawsuits are the result of negligence or the incompetence of employees. While you can’t monitor what everyone does on the floor 24/7, you can focus on training your employees properly so that they don’t make mistakes. Don’t only train them once either; you need to continually test their knowledge and focus on safety training so that it can stay fresh in their minds.
You should train your employees on how to identify danger as well and have systems in place so they can report dangerous or irregular behaviour from other employees. Proper training is especially important if you operate a fleet. Accidents are one of the main causes of lawsuits, and these can get extremely costly. So, you will need to work on constantly training your fleet drivers as well and use advanced telematics solutions so you can keep a close eye on their habits.
Inspections are about more than simply being compliant. Things like emergency lighting testing and other forms of testing are usually done to protect the public. If you don’t have these tests carried out, and a client, someone who happens to be in your building, or one of your employees gets hurt, then you could get hit by a hefty lawsuit.
So, if you haven’t performed an emergency lighting testing in more than a year, you need to have one performed right away and consider working with a company that goes beyond annual tests to ensure the safety of the people inside your building. Look at other safety tests that may need to be performed and see if the company in question performs multiple ones so you can save time and money.
Public liability insurance will protect you against all sorts of lawsuits, but that’s not the only one you may get. Physical injuries are not the only reason for lawsuits, and you could be sued because someone suffered financial losses after following your advice, for instance. Someone may also sue you for infringing on their intellectual property, and you might violate someone’s rights without even realising it. So, you will need to have coverage to protect against these types of lawsuits as well.
Errors and omissions insurance will protect you against lawsuits for faulty advice, while intellectual property insurance will protect you in case someone accuses them of stealing their designs or models. There are many other types of coverage available, so you should do your research to make sure that you have everything that you need.
Lawsuits can be devastating to any business, but especially for fledgling ones with a limited war chest. So, be very careful and protect yourself while focusing on safety and following best practices in your industry.