How To Prevent Customers From Suing Your Business

Litigation is something that all business owners are keen to avoid. As you can imagine, if someone sues your business, it can cost you a lot of time and money to defend the case. Plus, even if you were successful, your brand’s reputation may have got tarnished.

Of course, the best thing to do is to prevent individuals or other businesses and organisations from suing your business in the first place. But, how can you achieve that goal? Here’s what you can do to avoid getting lawsuits sprung on your firm:

Put everything in writing

The trouble with some misunderstandings in the business world is that customers may feel aggrieved enough to sue a supplier or retailer. As you can appreciate, legal action against other people is a long, drawn-out and often expensive endeavour for both parties.

With that in mind, one of the best things you can do for your business is to ensure that everything gets put in writing. Examples of what you should have written down include agreements, contracts, quotes, and estimates.

You should also keep accurate records relating to those documents, along with time and date information to help you defend any lawsuits.

Get the right insurance

Another thing you should do is buy the right insurance coverage for your business. For instance, if you’re a tradesman or contractor, Rhino trade insurance can provide the right cover for your needs.

If you’re an IT contractor or run an IT service business, it can make sense to invest in Hiscox professional indemnity insurance. Also, you may need public liability insurance from AXA if you run a removals business or a firm that deals with other people’s property.

Lastly, if you have full-time or part-time employees, the law demands that you have employer’s liability insurance in place. If you’re unsure what cover you need for your business, it’s worth speaking with an insurance company to determine your requirements.

Research before action

One of the biggest mistakes businesses make is doing things without properly researching the potential effects on other people or organisations. For example, moving customer information to a new database system.

When you make any significant business decisions or changes, you must always research what you plan to do before you action anything. Doing so will diminish the chances of disputes occurring and getting sued by your customers or other people.

Have a solicitor check your legal documents

Lastly, there will be times where you ask your customers to sign legal documents like contracts. You already know about the importance of putting everything down in writing. But, what are you asking your clients to sign?

If you’ve simply copied and pasted content from an online template, the chances are high that it won’t offer your business the most legal protection if things go wrong. That’s why you should have a solicitor check your legal documents.

They can make any necessary amendments by adding required content or removing anything that could get you in trouble.


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