Find out how your business can avoid professional liability lawsuits.
If your small business is slammed with a professional liability lawsuit, then it can be devastating. While having the right small business insurance is a great way to prevent professional liability issues, there are other risk management strategies your business can employ. Try out these suggestions to help you avoid ending up in court.
- Document Everything
One of the biggest mistakes that small business owners make is failing to complete documentation related to a claim. While recordkeeping won’t stop someone from suing your business, it can effectively mitigate the situation before your end up in court. For instance, if you have evidence that a claim is without merit, then the suit will not advance very far. Some of the things that your business should keep track of include written contracts, complaint resolution forms, and confirmation emails. If you feel as though you are over your head, then you might want to consider hiring an attorney to overlook your business’s legal documentation. Not only will they keep track of your potential issues, but they can also overlook written agreements to ensure that there aren’t any gaps in the wording.
- Establish Clear Lines of Communication
It’s also important that your business communicates clearly with its customers. This is especially true when you have unfavourable news, or are facing a delay. While no one want’s to be the bearer of bad news, being honest right up front will give the other party time to adjust their expectations, agree to a new timeline, or negotiate the end of a contract. While the last option isn’t favorable for your business, it’s far preferable to ending up in court. You should be especially careful to communicate issues regarding budget issues, shipment delays, project timeline changes, project errors, and so on.
These are some of the strategies that your business should employ to avoid professional liability lawsuits. Remember, another way to protect your business is by having the proper small business insurance protections in place. We at PMC Insurance Group are experts on small business insurance and can help you get the coverage you need. Contact us today to learn more about getting competitive coverage for your small business clients.