No matter the magnitude of your business’ success, the possibility of facing a liability lawsuit can make business owners in fear of their business’ financial stability as well as their own--especially in the case for small business owners. However, finances aren’t the only factor that business owners need to worry about in light of a lawsuit. How will this affect their reputation? Will their business be able to bounce back from the repercussions? While there are many aspects to consider, to ensure a positive outcome, it’s essential to invest in Professional Liability Insurance. With Professional Liability Insurance, business owners have the ability to protect themselves that their company from potential liability lawsuits. Alongside Professional Liability Lawsuits, it’s essential to educate yourself on the ins and outs of Professional Liability Lawsuits. This way, you can better protect your business and yourself from the events that cause these claims.
Taking a Closer Look
Professional Liability Lawsuits are legal proceedings that are brought by clients/customers who have suffered from the negligent actions of their employees. Causes for action include negligence, breach of contract, poor client relationship, conflicts of interest, etc. However, sometimes the most simplest of situations can result in a Professional Liability Lawsuits. These include:
- Typos: Sometimes, a numerical error or spelling mistake can cause employers/employees to miss deadlines or fail to deliver a product.
- Misunderstandings: Misunderstandings between clients, business owners, and employees is one of the most common reasons for liability lawsuits. Miscommunication can many times lead to unfortunate events.
- Missed deadlines: A missed deadline--interruption in the supply chain--can leave a business owner liable for what the client was unable to receive what they were promised.
By understanding the various causes of a liability lawsuit, you can fine-tune your business to ensure that these simple, yet critical mistakes do not occur. The goal is to do everything in your power to reduce your business from this financially detrimental exposure.
Reducing Your Business’ Exposure
To maintain an excellent reputation, ensure your business’ success, and steer clear from liability lawsuits, you must implement honorable business practices. Here are a few examples of measures you can take to successfully avoid liability lawsuits:
- Always use contracts: Contracts are essential in any line of work. They clearly define objectives and expectations, timelines, compensation, etc. and eliminate the opportunity for misunderstandings.
- Keep proper documentation: With clients and employees, it’s important to keep proper documentation and to also get everything in writing. For example, if you have a call with a client, be sure to send them a follow-up email on the topics that were discussed, therefore, reducing the possibility of future arguments and misunderstandings.
- Always keep clients informed: By keeping clients informed at all times, you are establishing a good and trusting relationship with them. With continual updates in progress or potential obstacles, clients will always feel prepared and in the know.
As you can see, there are various efforts you can take to deter the opportunity of a Professional Liability Lawsuit getting filed against you and your business. Talk to your local law office today, and receive a quote on Professional Liability Insurance to better your business’ protection.
About The Author:
At Zimmerman & Frachtman, every employee is a dedicated member of the team whose primary concern is defending the injured and seeking justice on behalf of our clients. We understand that no two cases are alike; therefore, no two cases are prepared the same way.