Protecting Your Business from Litigation
Owning and operating a business involves some level of uncertainty. Despite your tireless efforts to stay on top of sales, marketing, supply chains, cash flow, and employees, unexpected issues can blindside you. Commercial lawsuits are one of these and these will not only cause financial hardship but also a great deal of stress. A lawsuit against your business can also interrupt operations and damage your company’s reputation. Below, our Atlanta business litigation attorney explains how to protect your business.
Common Reasons for Business Litigation
There are a number of reasons businesses face lawsuits. Generally speaking, these include employee disputes, customer disputes, and disputes with other companies.
- Employee disputes: Legal disputes including employees often include alleged violations of wage and hour laws, wrongful termination, workplace harassment, and workers’ compensation disputes.
- Customer disputes: Business owners must regularly interact with customers and a seemingly minor dispute can result in litigation. Customers may accuse business owners of violating certain laws, such as the Americans with Disabilities Act, refusal of service, or failing to maintain their premises in a safe condition.
- Business disputes: Businesses rely on other businesses. This can result in many different types of disputes, including copyright infringement, breaches of contract, and more.
How to Protect Your Business from a Lawsuit
It is true that America is a litigious society, but there are many ways you can protect your business. These include:
- Choose your business structure carefully: Some business structures, such as limited liability companies (LLCs) offer more protection than others, such as sole proprietorships. When sole proprietors are sued, their personal assets are at risk. Instead, structure your business as an LLC or a corporation.
- Purchase proper insurance: Insurance is one of the best forms of protection against business litigation. General liability insurance will protect you from accidents that occur on your property and involve third parties, such as customers. Workers’ compensation, on the other hand, protects you in the event that one of your employees becomes hurt on the job. Determine which type of insurance your business needs and make sure you have it before you even open your doors.
- Write ironclad contracts: Verbal agreements and deals based on handshakes may be legally binding in Georgia, but they are extremely difficult to prove. Make sure that all agreements are written and that all contracts meet certain requirements, such as offer, acceptance, and consideration.
- Encourage open communication: Sometimes customers and employees alike may think that a lawsuit is the only way to be heard. Encourage open communication so you can resolve issues before they escalate to the point of legal action.
Contact Our Business Litigation Attorney in Atlanta
As a business owner, it is impossible to control everything that could happen. While you may take the above steps to protect you and your company, you may still face a lawsuit at some point. At The Forsythe Law Firm, LLC, our Atlanta business litigation attorney can review the facts of your case, prepare the defense you need, and negotiate with the other side to reach an agreement that is amicable for everyone. Call us today at 404-476-2717 or contact us online to schedule a consultation and to learn more about how we can help.
