How to Prevent a Business Lawsuit from Crushing Your Business

Every year, thousands of businesses in San Diego and across the state of California get sued by customers, vendors, and other parties. These business lawsuits can wipe out an organization’s profits or even send them into bankruptcy.

So, if you run a thriving small business, what can you do to protect it and you from litigation? At the Semanchik Law Group, we recommend:

Getting All Agreements in Writing

Whenever your business enters into an agreement with another company, you should get all the details of the deal in writing. If you fail to do so, it is possible that the other group will claim you did not deliver on your side of the agreement and file a lawsuit against you.

Most courts accept emails and letters as evidence in cases of this nature. However, if you want to give yourself an extra level of protection, you can have a business attorney in San Diego prepare a binding legal contract for both parties to sign.

Incorporating Your Company

If a customer sustains an injury on your premises while you operate your business as a sole proprietorship, they may hold you personally liable for their damages. Should they win their lawsuit, the court might grant them the ability to take possession of your car or drain your bank account.

To avoid dealing with this nightmare scenario, any experienced California business lawyer would recommend that you incorporate your business. In doing so, you separate yourself from your company, making it significantly harder for plaintiffs to come after your personal assets.

Purchasing General Liability Insurance

No matter how cautiously you run your company, it is all but certain that a customer or vendor will decide to file a lawsuit against you at some point. Since there is little you can do to prevent this situation from happening, it makes sense to take steps to mitigate the damage it can do to your small business.

You can protect your company’s finances by purchasing a comprehensive general liability insurance policy from a reputable insurer. If you get sued after you buy this policy, your insurance company will help to cover most of your legal fees and liability expenses.

Writing a Detailed Procedures Manual

If one of your employees or contractors gets into an accident and suffers an injury on the job, they may be able to file a lawsuit against you. Luckily, you can protect your organization against this eventuality by writing in-depth procedures manual for your workers to follow.

If the individual’s accident occurred because they chose not to follow the proper procedures, this document may help you get their case dismissed.

Set Up a Free Consultation with a Business Attorney in San Diego Today

Would you like to have an experienced California business lawyer help you protect your company from a business lawsuit? Then you have come to the right law firm. The Semanchik Law Group has been assisting businesses from every corner of San Diego with their legal issues for years, and we would love to do the same for you. Give us a call today at (619) 535-1811 to set up a free consultation with a member of our team.