No business wants to face a lawsuit. But you are more likely to experience a lawsuit, like a personal injury claim, if you do not take the right steps to protect your company.
Protecting Your Business from Personal Injury Claims
Personal injury lawsuits cannot only be financially detrimental to businesses. They can also tarnish companies’ reputations; regardless of whether the personal injury claim is made by an employee or a customer.
As a business owner, it is your responsibility to ensure the workplace is free of hazards that could cause accidents like slips and falls.
Maintaining consistent health and safety standards is instrumental in reducing the risk of accidents happening. As long as all members of staff remain vigilant and always consider the safety of their environment, potential hazards can be eliminated.
However, not all accidents can be avoided. So, it is vital that you get general liability insurance to protect your business from a lawsuit like a personal injury claim.
Furthermore, if you want to stay on top of legal liabilities, it is worth hiring a company attorney who can provide you with helpful advice.
Understanding What Personal Injury Lawyers Do
Personal injury lawyers are also there for when the worst happens. They can provide you with sound advice and represent you when your business faces a personal injury lawsuit.
It is worth understanding what personal injury lawyers like those at The Gomez Firm actually do, so you can understand just how much help attorneys can be in your time of need.
In addition to representing clients through trials, personal injury lawyers investigate claims and gather evidence, interview witnesses, calculate damages, draft pleadings and motions, counsel their clients, and much more.
Protecting Your Business from Lawsuits Related to Data Breaches
Lawsuits come in many forms. They are not solely concerned with personal injuries.
For instance, your business could face lawsuits due to data breaches. That includes things like customer privacy breaches, intellectual property theft, and financial losses.
To avoid lawsuits related to data breaches, you need to stay up-to-date with the latest security software and never miss critical security updates.
You also need to regularly backup files in the cloud to provide an additional level of security against data breaches and things like power outages.
Limiting account access will also help your business to avoid lawsuits related to data breaches. Not every employee and contractor should have access to your computer system and the entire network, so make sure you set the proper permissions and minimize the number of people who have unrestricted access.
Separating Your Personal Finances from Your Business Finances
If you operate your business as a sole proprietorship, you may not think you need a separate business bank account. But as a sole proprietor, you are then personally liable in the event of a lawsuit.
To protect yourself, separate your personal finances from your business finances.
It could make sense to structure your business as an LLC or a corporation to protect your business further.
Keeping Accurate Records and Putting Agreements in Writing
Whether the lawsuit you face involves data breaches or something else, you can help to protect your business from a lawsuit in the first place by keeping accurate records and putting all agreements in writing.
The more documentary proof of legalities you have, the easier it will be to resolve disputes and clarify each party’s rights and duties.
A lawyer will be able to help you determine which formal contracts you should have in place, from employment contracts to supplier agreements.
As for records, make sure you keep accurate records about the services and products your business provides to help resolve any lawsuits that happen.