Business Owners Here's How to Avoid Lawsuits

Business Owners Here’s How to Avoid Lawsuits

If you own a company of any kind or size, you've probably thought about the potential problems and expenses associated with lawsuits.

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No one wants to be sued, but every year owners face off in court with disgruntled plaintiffs. This area of legality is different than the need for a personal will or any other type of document that has to do with your person, as opposed to your business. If your organization ends up on the losing side of a suit, it could bankrupt you. However, most legal actions don’t lead to bankruptcy but do cost businesses vast sums of money in damages, fines, and court costs.

Luckily, there are numerous ways to minimize the chances of ending up in court. Transport companies, for example, use dashcams to cut down on the risk of accidents, while health professionals use consent forms and liability waivers to keep lawsuits at bay. Likewise, accountants, real estate agents, retailers, and others use a variety of methods to avoid legal actions altogether. Consider the following examples from various industries.

Dash Cams for Fleet Managers

For fleet managers, the prospect of dealing with adverse legal situations is very real. Accidents can cost companies huge sums in settlement costs. That’s one of many reasons fleet supervisors are adamant about doing whatever they can to prevent collisions. One of the top causes of rear-end crashes is tailgating, a fully preventable action for drivers of commercial trucks.

Companies make concerted efforts to coach all their drivers about how to minimize tailgating by staying a safe distance behind the vehicle in front of them at all times. Another weapon in supervisors’ arsenals is the AI-enabled dash cam. Not only can the devices warn drivers about tailgating by detecting the distance from one vehicle to another, but they can also prevent a large number of tailgating-related crashes by doing so.

Consent Forms for Health & Wellness Professionals

Estheticians, nail technicians, massage therapists, acupuncturists, athletic trainers, and other wellness professionals and bodyworkers use detailed consent forms to keep themselves safe from most kinds of lawsuits. In most states, those who work in the health arena must carry a valid form of liability insurance coverage to obtain an operating license. Clients who end up with injuries after massage sessions often file charges in local court to recover financial compensation.

Special Tactics for Retailers

Retailers have a special responsibility to make their public spaces safe. Courts tend to come down hard on merchants who don’t keep their floors dry and entryways free of clutter. Business owners need to demonstrate their knowledge of all the local safety-related laws to obtain proper insurance coverage. Slip and fall policies are just one of the mandatory forms of insurance that retail sellers must have before they can open their doors.

Documentation in Accounting Firms

When citizens end up in trouble with the IRS, they invariably think about bringing legal action against the person who prepared their tax returns. Tax accountants are among the most frequently sued professionals in the nation. It’s important to note that while thousands of suits are filed against CPAs (certified public accountants) every year, very few are successful. That’s because accounting firms protect themselves with detailed liability waivers and releases before they agree to take on new clients.

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