How Can Your Business Limit Lawsuits?

Your business not only creates income for you, it may provide employment for other people.  Small and medium businesses are subject to the same risks as major corporations. You buy business insurance to help protect your business from claims and litigation that may come from a variety of sources.
Here are a few tips from business attorneys that could help reduce the chance that your business is involved in litigation.
  • Review all leases and contracts to make sure that you have addressed all your legal obligations, including insurance requirements.  We recommend the use of an attorney, and also call your insurance agent so they can determine what is required of you for your business insurance.
  • Make sure you have a comprehensive employee handbook that outlines your policies and procedures. This should include a sexual harassment policy.
  • Provide annual training for all employees on your policies and procedures.  Effective training enables your organization to comply with all legal requirements, thereby avoiding costly lawsuits, audits, and fines.
  • Make sure your business complies with all OHSA laws and rules. Many OSHA standards explicitly require the employer to train employees in the safety and health aspects of their jobs.  Other OSHA standards make it the employer’s responsibility to limit certain job assignments to employees who are “certified, competent, or qualified”.
  • Address employee complaints. Employers need to have a well-publicized, specific procedure for employees to express their complaints without fear of retaliation.
  • Insist on thorough and complete documentation of supervisory decisions involving all personnel matters.