If you own a small business, you will inevitably face some kind of legal challenge. But no business is willing to face a lawsuit. Luckily, there are several things you can do to lower your liability and reduce the probability of a lawsuit.

It is critical to take some defensive measures. A Daytona Beach small business lawyer can show you how to avoid lawsuits and even how to protect yourself if a judgment is entered against you. The following protection actions ahttps://www.lankfordlawfirm.com/re vital, which every business should consider having in place.

What Are the Common Sources of Liability in Business?

Before you think about strategies to reduce liability and the likelihood of lawsuits against your business, consider the likely sources of liability. Your business may face legal liability due to several reasons. These may include:

  • Employment liability
  • Premises liability
  • Professional malpractice
  • Automobile accidents
  • Liability from relationships, e.g., divorce
  • General debt, e.g., taxes
  • Civil rights violations
  • Environmental liabilities

How Do I Reduce the Risk of Liability Against My Business in Florida?

Reducing the risk of liability requires sensible planning. Insurance is often the first strategy to protect your business against lawsuits. Start by having things like auto insurance, professional liability insurance, product liability insurance, malpractice insurance, and commercial property insurance.

Business people in Florida can reduce legal risks and lawsuits by planning and minimizing unnecessary risks in their businesses. A Daytona Beach business risk management lawyer can analyze your business and help you think tough your options.

Similarly, business people should avoid dealing with untrustworthy individuals. One of the ways to protect yourself is by avoiding oral promises and agreements. Rather, have a Daytona Beach business small business lawyer review your agreements in advance.

Structure Your Business Properly

This is a critical step to protecting your business. For instance, a limited liability corporation (LLC) will protect sole proprietorship and small businesses in Daytona Beach. If you have this in place and are sued, only your business assets can be involved, not personal assets.

You need to speak to a business formation attorney in Florida to structure your business properly. Your lawyer will inform you whether a corporation or LLC suits your business needs.

Implement Proper Sanitation Procedures

No one relishes getting sick. While you cannot control the seasons of diseases, you can prevent the outbreak of illnesses. Simple things like having proper food storage facilities, installing hand sanitizers at various checkpoints and having a clean team taking over after a while can prevent some of these liabilities.

Install Signs in Your Workplace

It’s always prudent to protect your employees against potential dangers. An employee injuring themselves on your watch isn’t a pleasant situation. If need be, have staff members who occasionally give verbal reminders to guests.

Look Out for Risks and Implement Countermeasures

You may not eliminate all the risks from your business. But you can have procedures that minimize these risks. For instance, you can reduce slip and fall incidences by having good housekeeping practices or ensuring adequate lighting.

If you implement proper risk mitigation measures, you will have a good defense should a lawsuit follow. Let a Daytona Beach business risk management lawyer take you through the reasonable steps to ensure safety is achieved at your workstation.

Ensuring What You Say or Write Is Accurate

When selling a product or service, it’s easy to misrepresent your business. This is an easy avenue to get sued and lose the case. Ensure that you familiarize yourself with industry regulations and adhere to them. In addition, get your contracts done by a skilled Florida business contracts lawyer who understands what should be done. Having such contracts can be strong protection against lawsuits.

How Do I Protect My Personal Assets from A Business Lawsuit?

One of the reasons for setting up a business entity is to protect your personal assets from those of your business. Some of these business entities include a corporation, LLC, and a limited partnership.

For instance, an LLC’s creditors can go after the LLC’s bank account and not the owner’s personal account if the LLC cannot pay its debts. However, the owner may be liable if they personally guarantee the business debts.

Maintain The LLC Independently

It’s not advisable to mix personal assets and corporate assets. Similarly, you should obtain your own insurance and get a separate LLC insurance. Likely, your LLC won’t protect you from personal liability.

Avoid Asset Protection Mistakes

Some people may commit some mistakes to avoid liability. However, some are innocent mistakes that can be costly. They include:

  • Fraudulent transfer of assets to family
  • Hiding assets
  • Not understanding asset protection
  • Thinking creditors are unintelligent or lazy
  • Giving control of your assets to someone else
  • Confusing asset protection with estate planning

How Can I Reduce the Risk of Litigation for Employment Terminations in My Small Business?

A considerable amount of business litigations come from unlawful or illegal employment terminations. You will want to ensure you have followed the law before terminating an employee. Protect your business by:

Reviewing Employee Work Rules, Workbooks, and Job Applications

Limit statements touching on progressive discipline and permanent employment.

Using “At-Will” Language

Ensuring employee reviews are done on time and are accurate and consistent with company policies

Using Standardized Procedures for Communicating and Implementing Any Termination

Asserting the need for thorough and complete documentation of supervisory decisions which touch on personnel issues.
Your business risk management lawyer in Florida will inform you of more strategies that will help you avoid legal troubles with your employees.

Do I Really Need a Florida Small Business Lawyer?

Business law matters can be complex. Having an experienced business attorney in Daytona Beach can be a great asset. You don’t only need a lawyer when a lawsuit has already been brought against you, but also for ongoing risk assessment, management and mitigation.

Business Law Firm Protecting the Growth and Survival of Businesses in Florida

Running any kind of business involves a certain amount of risk and liabilities. There’s no other way around it. But you can manage and reduce this risk if you understand your legal exposure. If you’re in doubt, always err on the side of getting a business lawyer.

Our business law firm can help you protect your business. We understand your business is important to you, and that’s why we are ready to treat it with the care it deserves. Talk to us today to get started.