As a business owner, there are hundreds of aspects to consider in order to protect your business. Getting sued could be detrimental to both your finances and your business name, therefore understanding how to prevent it is a huge factor for protecting your business. Here are six ways to prevent getting sued:

1. Remain professional

Ensuring that your company remains professional at all times is crucial to avoid getting sued, therefore be aware of any public statements which are made that may offend anyone. Also, be wary of who you are doing business with. Should you do business with a company who has a bad reputation and later goes bankrupt, your business could also take the hit. Always be tight on who you are dealing with to avoid getting caught up in matters that aren’t your fault.

2. Put it in writing

To ensure that you always have proof of anything that has been agreed with a client put all business details in writing. This includes agreements, contracts, invoices or any other financial transactions which you may need as evidence. Documents in writing provide businesses with a form of back-up.

3. Be wary of contracts

When writing up a contract for a potential client, it is essential that you are clear with all aspects of the agreement. State every single possibility that could occur to prevent any repercussions. Make sure that the wording is clear and can be read with ease rather than being too complex. Should a client feel that they have been misled within the terms; your company could get sued.

4. Keep clients happy

Your business wouldn’t thrive if it wasn’t for your customers, therefore putting their needs first to resolve any issues would be much easier than going to court. If a customer makes a formal complaint, you are at risk of a court order, therefore making sure that the client’s needs are dealt with in the initial stages of a disagreement could prevent drastic measures.

5. Stick to your word

Regardless of whether you have it in writing or not, keeping your word is a vital part of a good business image. If your business is untrustworthy, clients won’t return and therefore you may lose valuable business networks who keep your company ticking. Stick to what was agreed to get clients on your side. Then, should issues arise, you already have a good working relationship with the client to prevent small issues from escalating.

6. Get insured

One way to prevent getting sued is to get a good liability insurance to keep you protected. You will reduce risks dramatically and it provides you with a good legal defence should any complaints arise from clients. There may be the need to hire a lawyer in extreme instances and insurance may cover these expenses which can be pricey if paid upfront. It would be advised to get insured as soon as you set up your business, otherwise you may not get as much cover the longer times goes on.

 

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