Home Others How To Stay Safe If Your Company Gets Sued

How To Stay Safe If Your Company Gets Sued


No one plans to get sued. But sometimes, the unexpected happens. There are a lot of reasons for this and the response to a lawsuit is going to depend upon the nature of the claim made against your business.

As a business owner, it is your responsibility to do everything within your means to limit your risks. In order to keep the business running smoothly and have a legal contact, business owner should interview attorneys. Attorneys guide the owner if his company gets sued.

Marc. A. Johnston of Johnston Law Firm, P.C. – a dedicated Portland lawyer who remains committed to serving his community – shares a few tips in order to stay safe if your company gets sued:

Hire a competent attorney.

Owners should attempt to secure the attorneys that are familiar with the local laws and customs in the area in which the business operates. An attorney would help you before any action and will also help to react when being sued.

Settle the case.

If your company is sued, you can make the choice to settle the case if you don’t want any publicity. In order to get settled, you will have to give up something to get the plaintiff to agree to drop the case against you. Usually this involves paying a settlement to the plaintiff but the terms of agreement depends upon the nature of the case.

Insure yourself.

In order to insure yourself against liability, the important way is to build protection into your contacts. If the business is large and has formal board of directors, it is necessary to secure directors and officer’s liability insurance. This insurance helps in protecting the directors’ personal assets against the company.

Maintaining property.

Prevent accidents from happening by maintaining the property and keeping a safe and secure workplace. Also enforce workplace safety rules. You should consult with a professional insurance officer and maintain adequate level of insurance. This will help a lot

Document everything.

The best way to avoid any kind of mishap and misunderstanding is to document every applicable policies and terms. A well-managed contract, employment manual, or other writings that contain the critical terms of the agreement can help any kind of misunderstanding. Also reviewing every term regularly will help to make further changes in its which will make the company more strong.

Protect the files.

Nowadays all the businesses work quite intensively on computers, it is very important to emphasize the safety requirements on your computer system. Businesses should have updated antivirus and other types of security software loaded and activated on their systems. If you keep your files at your place of business, it is essential to purchase a fireproof safe in which you can store these files.

The bottom line.

Any business can be sued anytime by an employee, vendor, and customer or just by anyone who comes into your contact in that day. It is very sad to say that you can do nothing to guarantee that you can never be sued. So if your company gets sued, the above suggestions can help to keep your company safe.