Starting a small business often represents the culmination of years of hard work, dedication, and commitment to your idea. You have brought it from the first inkling of an idea to full life and want to see it thrive in this new environment.
As your business grows, you want to do everything you can to protect it for the long haul. Many small business owners may focus so much on making their business viable that they fail to consider the multitude of ways that can come back and bite them later.
No matter your industry, small business owners have to have some form of protection in place to help them in the event of a lawsuit. Aside from hiring an experienced commercial business lawyer in Philadelphia, PA, here are some ways small businesses can protect themselves from lawsuits.
Get Enough Small Business Insurance
Most new companies need to get some version of small business insurance as part of the initial startup process. These policies can help protect your company from claims against you or any time you get sued. However, knowing how much coverage is enough and what is too little is a personal conversation you need to have with your business partners.
Additionally, you can tailor business insurance to cover specific areas of need for your industry, operating model, and more. The most popular options include the following:
- Professional Liability Insurance: helps cover lawsuits centered around errors or omissions in the services you provide.
- General Liability Insurance: covers any claims of property damage or bodily injury claims.
- Business Income Insurance: replaces lost income if you can’t operate your business due to property damage or theft.
Protect Your Business Data
Your customers trust you with their data every time they make a business transaction with you and use their credit card to complete it. Keeping your data, including addresses, credit card information, and other personal details, safe and secure has to be one of your top priorities. Getting data breach insurance can help protect you against this worst-case scenario and help pay for the costs associated with your response.
Build and Maintain Your Reputation
One of the best ways to protect your small business from potential lawsuits revolves around your reputation and how you interact with your customers daily. Establishing a good rapport with your customers and treating them with respect and transparency will help in crisis situations. While it won’t stop some people from following through with the lawsuit, you may be able to diffuse the situation enough to avoid the court system and find an amicable solution for all parties involved.
Invest for the Good — and the Bad — Times
The key to running a successful business revolves around how well you’re prepared for the future. The good times, the bad times, and everything in between can greatly affect your overall cash flow; having the reserves to cover every possibility becomes more important than ever. These reserves can help protect your personal assets and help you cover any potential business lawsuit that may arise.
Have Trusted Legal Services You Can Call in a Pinch
No matter how well you prepare for the unexpected, you may still get caught unawares by unexpected legal action and lawsuits. In cases like these, seeking legal advice from an experienced business attorney can help you cover your bases and ensure your company is protected. The experienced Philadelphia business lawyers of Kalikhman & Rayz, LLC, are here to help.
Our expert team has helped countless small businesses fight for their rights and protect themselves from lawsuits filed against them. Contact us to schedule your initial consultation and learn about our diverse practice areas today!