4 Ways For Businesses to Avoid Legal Action

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A legal action against your business could be extremely damaging. As well as costing you a great deal of time and money, going to court can severely harm your brand’s reputation and have a lasting effect you may never recover from. If you are an honest business owner who follows the letter of the law and strives to do the right thing, there is no reason why a legal case should ever affect you. But accidents happen, and it is possible that one small mistake could find yourself facing accusations of negligence, malpractice, or breach of contract. All it takes is an inappropriate comment or an accident in the office for all hell to break loose.

To help you stay compliant and avoid the pains of going to court, here are four ways for businesses to avoid legal action.

Seek legal advice

The most effective way to avoid legal action is to get advice from a professional. Consulting with a law firm like Henry & Beaver, LLPensures you are knowledgeable about all the best practices in regards to labor laws, contracts, employee rights, and other issues that might affect you. Although legal advice will cost you a fee, it will be worth it for the peace of mind that comes with remaining compliant and knowing that you are safe from legal action.

Take out insurance

Insurance is something no business owner ever wants to use, but it is invaluable if the worst arises. The right insurance policies will protect you in the unlikely event of a court case, covering your legal fees and any other loss of profits caused. There are various types of insurance that can help you, but as a minimum you should look to take out employers’ liability insurance, public liability insurance, and professional indemnity insurance.

Prioritise employee wellbeing

Legal action could come from your employees. Perhaps if they deem their work environment to be harmful to their mental health, they have been terminated unethically, or they have injured themselves in the workplace. It is your responsibility as a business owner to keep them safe, and there is no reason why a lawsuit should arise. Take steps to make your office physically safe, by making any necessary repairs and responding to issues quickly. Prioritise your staff’s mental health by adopting a flexible working structure to promote good work-life balance, and make sure you follow all employment laws to the letter.

Avoid bad situations

All it takes is a misjudged comment for a potential court case to arise. Harassment cases are common in workplaces all over the world, so be careful not to get yourself into any awkward situations that could be misinterpreted. Avoid any inappropriate jokes or banter, physical touch, and any comments on protected characteristics like race, religion, gender or pregnancy. 

The same advice goes for business scenarios – if it doesn’t feel right it probably isn’t. If you have any doubt over whether a contract may have been breached or data mishandled, take extra care to ensure you don’t break the law and consult your advisor if you have to.