4 Legal Liability Concerns for Small Businesses
Running your own business can bring autonomy and financial success, but the risk and liabilities of interacting with clients, making your own product, and navigating the business world can open you up to numerous lawsuits. It is always best to have a working relationship with corporate legal consultation Hannibal MO offices in the event a claim is filed, but knowing the common risks are another way to reduce your liabilities.
Breach of Contract
With a legal suit filed under breach of contract, it means your client or a vendor feels that your business did not carry out the terms specified in a signed contract. The terms may have been concerning payment for goods and services, delivering damaged or incorrect goods, stealing a trade secret, or not honoring a warranty.
Personal Injury and Accidents
Anytime someone slips or falls on your property, whether the ground was wet or they tripped over an item left on the floor, the resulting accident could lead to a lawsuit. Even if the individual isn’t badly injured, the cost of settling their claim could cost your company thousands. This is why business experts recommend comprehensive insurance coverage.
Automobile Accidents
Even if your company doesn’t own its own fleet or provide company cars, employees driving their cars for work purposes can be a liability. The potential for an accident that causes personal injury, death, or property damage is a legal liability without the right insurance coverage.
Discrimination Cases
Charged can be filed against your company by customers or employees using grounds of discrimination. Federal laws protect individuals from being shown biased or negative attention based on things like gender, religion, age, disability, or race. These cases can be particularly troubling from a reputation perspective, causing distrust and skepticism over the ethics of the company.
The best practice for businesses wanting to protect themselves from claims is formulating a risk management plan. Having an attorney on retainer and carrying good insurance are also ways to protect from legal liabilities.