5 ways to reduce the risk of business litigation

| Jul 7, 2020 | Business Litigation |

If you opened a new restaurant in Pennsylvania this year, you probably wish you hadn’t. If you have managed to survive until now, your finances may well be on a knife-edge. It would take one customer lawsuit to end your project before it has had a chance to begin.

While business is quiet, you can ensure you have policies in place to reduce the chance of litigation destroying your business. Here are some things you should consider:

  1. Do you have adequate insurance in place? Check your insurance coverage carefully. Many startups opt for cheaper insurance to reduce premiums. If it does not provide adequate coverage, it could be a false economy.
  2. Is your training and staff documentation sufficient? Lawsuits can come from staff as well as customers. Do you have clear policies in place to deal with issues such as discrimination?
  3. Do you have a system of controls and checks in place? Trying to defend yourself by saying you did not know about an issue will fail if a judge finds you should have known.
  4. Are there any little things that need improvement? That corner of the carpet could trip someone up. Taking five minutes now to tack it down could save you time and money later.
  5. Are you thinking long term when you respond to complaints? Many business lawsuits could have been avoided if the response to the initial complaint was different. Sometimes, all people want is an apology and a solution.

If you find yourself facing business litigation, seek experienced legal counsel. Knowing how these matters work is essential to minimize the consequences for your business.