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How to prevent common small business lawsuits

On Behalf of | Jan 22, 2022 | Business Law |

In any business, large or small, an owner runs some kind of legal risk. Customers, employees, partners and other relevant parties could seek legal action if they feel they have a case. While some lawsuits are unavoidable, there are many things Texas business owners can do to lower the risk of legal action being taken against them, and to minimize any damage that could come from lawsuits. Here are some of the tip tips for preventing small business lawsuits: 

  • Think before speaking (or typing): Whether it’s a public statement, a message to an employee or any other communication, what business owners say, type or do can be brought up in a legal case. One should keep this in mind and seek legal counsel when communicating on a matter that could become legally dicey. 
  • Put everything in writing: Contracts are key to preventing miscommunication, and therefore, to preventing a lawsuit. They can also be very helpful to have if legal action does come about, as it can quickly clarify the terms of any agreement. 
  • Follow proper, strict rules with employees: To avoid a harassment or discrimination lawsuit, employers should be mindful of how they treat employees. Having strict policies in place for human resources can be very helpful in preventing such issues. 
  • Prioritize cyber-security: If customer information is hacked or leaked, there could be legal consequences. Investing in encryption and cybersecurity is a good idea, especially for businesses that deal with sensitive matters.

These preventative measures for businesses can take additional time and investment on the front-end. However, it is worth it to reduce the risk of a costly lawsuit. Speaking with a Texas business attorney is a great starting point to ensure policies, contracts, and other measures align with state business laws. 

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