As a business owner, it is almost certain that you would do everything to keep your customers happy. Despite going above and beyond to do your best, there will always be a possibility that something will go wrong in the future. A single and relatively minor mistake or accident could cause major repercussions. Depending on the severity of the problem, there is a possibility that the lawsuit’s outcome will lead to an untimely bankruptcy for your business. Within this short guide, you will find tips for reducing your risks and avoiding lawsuits.
Implement Quality Control Standards
First and foremost, it is pertinent to implement strict quality control standards. All major corporations will carefully examine their products, before they’re allowed to leave the manufacturing facility. If anything is not up to par, the company will fix the problem immediately. This is far more important for foods and medications, since the repercussions could be life threatening. Nevertheless, even a faulty drill, dresser or t-shirt could lead to a lawsuit from one of your customers. Hire a group of experts to monitor your company’s quality control protocols to prevent these problems from occurring.
Write A Great Contract
Believe it or not, one of the most effective ways to reduce your liability is to compose a great contract. Within the contract, it is possible to use phrases to remove certain liabilities for your company. For instance, you can decrease the risks involved with not completing the project on time. Make sure you work with an experienced professional to ensure your contract reduces your risks to a bare minimum. If you do not, you will leave the door open to many future lawsuits.
Keep Communication Channels Open
While you’re at it, you need to realize that good communication is key for solving problems in advance. By communications regularly and effectively with your clients, you will be able to spot problems immediately. The client will be more willing to express their feelings and concerns. Once you’ve identified potential problems, you will be able to address them right away. This will effectively allow you to solve the problem, before it transforms into a full-fledged lawsuit.
Avoid Infringing On Other Company’s Rights
At this point, you should be familiar with trademarks and copyrights. Both are utilized to protect a company’s assets. Corporations pour thousands of dollars into their technologies and brands to make them valuable. The trademark can help them protect a name or logo, while the copyright is designed to protect their work. Once these things have become valuable, these companies will go above and beyond to prevent them from being used illegally by others. Before using a name, slogan or image, it is pertinent to make sure it is not protected.
Check with the United States Copyright Office and make sure you can use the technology or method without any potential repercussions. Also, be sure to protect your own work with copyrights whenever possible.
At some point, it is certain that you’ll be responsible for firing an employee. The actual act of firing the individual will be trying. It is also crucial to realize that firing an employee could come with legal risks. If the employee feels they’ve been wrongfully terminated, they could very well file a lawsuit against your company. Besides hiring a business law attorney, you should also take steps to limit the risks. There are several effective ways to do this. For instance, you should compose an employee manual, use a contract for each employee, and force each worker to sign a non-disclosure agreement.
Finally, you may want to consider purchasing employment practice liability insurance.
Look Out For Your Workers And Consumers
At the end of the day, your attitude towards your employees and customers can go a long way. Show these individuals that you sincerely care about them. By doing so, you will be able to gain their trust and convince them that you will never wrong them. Then, this will give them reassurance that your company will fix the problem and simultaneously decrease their urgency to file a lawsuit.