4 Different Ways to Protect Your Business from Legal Action

All products and services featured on this site are independently selected by our authors and editors. If you buy something through links on our site, we may earn an affiliate commission.

minute/s remaining

People are becoming increasingly litigious in our society and so businesses need to ensure that they are suitably protected from whatever legal cases might come, such as false claims or accusations of substandard service. However, most entrepreneurs don’t really know where to begin when it comes to safeguarding themselves and their company. For this reason, we have written this article today to help anyone with this predicament. Keep reading if you’d like to find out 4 different ways to protect your business from legal action.

1.) Frequent Assessments

Nobody likes assessments but they are a necessity when it comes to preventing legal action from being taken up against your company. By regularly assessing how your policies and procedures are being conducted, you can find where there is room for improvement. For instance, is your no-returns policy counterproductive? Is it causing a lot of customers to complain and turn their backs on your business? What about the quality of your service? Are you guaranteeing your customers an excellent job and then making a mess of it? All these factors make legal action more and more likely. So, we recommend conducting regular assessments and seeing where the quality or efficiency of your business could be improved. By providing the very best products and services possible, you are much less likely to have legal claims leveraged against you.

2.) Adequate Insurance

If you run a business, insurance is essential for a whole manner of reasons. Not only can it soften the financial blow of making a mistake but also compensate for the customer on your behalf. Some insurance providers also cover the legal fees that are entailed when someone accuses you of misconduct. For example, surgeons in healthcare might want to find out more about medical indemnity insurance, which provides them with legal coverage in case a patient accuses them of negligence or malpractice. Meanwhile, landlords can obtain insurance which protects them if a tenant injures themselves on the property and tries to find a way to blame them. Basically, insurance is the ultimate contingency plan.

3.) Customer Service

Customer service is incredibly important for a whole manner of reasons. Firstly, customer service helps to build a good relationship with your customers. It facilitates communication between the client and the businessperson, too. Most importantly, customer service can help you to nip any problems in the bud before they develop into something worse, such as a legal matter. When delivering customer service, you should be understanding and validating, regardless of how testing the other person is. Be willing to go above and beyond because this will win good favour. Meanwhile, apathy is the number one way to worsen things.

4.) Enforcing Regulations

Your business needs to follow certain rules and regulations because these ensure that you are working within the law. When it comes to legal cases, this can work as proof in your defence if a customer or staff member tries to accuse you of misconduct. By enforcing rules and regulations in the workplace, you can also guarantee a higher standard of practice and prevent your employees from inadvertently breaking the law. For example, lifeguards in leisure centres are regularly trained to make sure they know what to do in a crisis and how to prevent accidents from occurring in the swimming pool.

These are some different ways to protect your business from legal action. By delivering the very highest standard of service to customers, you are much less likely to have accusations made against your company. Meanwhile, insurance will help to cushion the financial impact involved with legal cases.

About the Author 

Luca Yates

Through his work in the SEO and Corporate landscapes, Luca Yates has been on his own personal growth journey. Today, he loves helping others to achieve their goals.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}

The boss walked into the meeting room, and the atmosphere suddenly turned chilly. No one wanted to be here because everyone knew this guy had no business being the leader. We’ve all been there, and we’ve all also heard the mantra over and over that we need to step up and lead. In general, that’s

When You Should NOT Be The Leader

I had a familiar conversation with an entrepreneur who approached me about business coaching yesterday. “Getting business isn’t the problem. Keeping up with it is! I’m always working!” Another day, the same problem. Like many of my clients, this lady was a hustler, always working, had plenty of clients, yet hadn’t even broken six figures yet. Hitting the

I’m Selling Plenty but Can’t Keep Up: Scaling Your Business