Could a small business prepare for lawsuits?

On Behalf of | Apr 15, 2021 | Uncategorized |

A California small business owner could go many years without facing a lawsuit. Then, one day, a process server arrives. Unfortunately, any business could find itself facing litigation. Everything from an unsatisfied customer to a premises liability claim may result in legal actions. So, business owners may benefit from thinking about how to prepare for potential unexpected lawsuits.

Insurance and incorporation

Small business owners may find tremendous value in a general liability insurance policy. Purchasing a policy that financially covers a business from various covered perils could keep a company from going into bankruptcy if something terrible happens.

General liability policies don’t cover everything, so it may be wise to look at the exclusions. Perhaps purchasing additional business-related insurance policies would add more protection.

Cutting down on the chances of a lawsuit

Business owners might get themselves into legal troubles due to their actions or omissions. Not repairing a broken sidewalk may invite a slip-and-fall accident.

Producing marketing materials that are deceptive or promise too much could backfire on an entrepreneur. Making improbable guarantees may lead to days in court.

Employers might wish to keep watchful eyes on employees. Careless employees could get their boss into trouble. Disastrous employers that harass their co-workers might create costly legal nightmares.

Even the most careful steps may not be enough, though. A company might end up sued, and the owner deals with the stress. Taking swift action and contacting an insurer might be among the first steps to take.

An attorney could help someone dealing with business legal troubles. The attorney may look at a case to see if it has merit and then address the action.