What Are the Potential Lawsuits My Business Could Face?
If you’re a business owner, the last thing you want to encounter is a lawsuit against your company. Business lawsuits can be lengthy, costly, and frustrating. The outcome can be reputational damage to your company, shareholders, and business partners. It’s rarely likely that civil litigation will improve your company’s bottom line.
You want to do everything possible to protect your business from legal disputes in 2023. An excellent starting point would be to consult skilled Toronto business lawyers. They’re up to date with the business regulations and best practices you can adhere to in protecting your company. They can also provide legal guidance if you’re facing a business lawsuit.
Types of Business Lawsuits
Ontario civil litigation lawyers represent businesses with various types of business lawsuits. While every case is different and involves specific people, events, and legal claims, the issues often revolve around the following:
- Breach of fiduciary duty Breach of contract
- Intellectual theft or infringement
- Product or premises liability
- Workplace accidents and workers’ compensation
- Workplace harassment or discriminatory employment practices
Who Can File a Lawsuit Against My Business?
Several parties could file a lawsuit against your company, including, but not limited to:
- Employees who file employment disputes
- Customers who file malpractice or personal injury cases
- Other companies that file intellectual property or breach of contract lawsuits
- Shareholders and business partners for breach of fiduciary duty.
The party suing your company depends on the legal claims and the case specifics. Hiring an experienced civil litigation lawyer in Ontario to represent your business can protect your business from the adverse aftermath of a lawsuit. The lawyer can fight aggressively to defend your company against claims to protect its reputation and finances.
What Can I Do to Protect My Company?
As a business owner, you can take several measures to protect your business from lawsuits. Skilled civil litigation lawyers can walk you through them all to ensure you’re on solid legal ground when running your business and conducting matters pertaining to it.
Understand the Laws Applicable to Your Industry
A crucial step in protecting your business from potential lawsuits is understanding all the applicable laws in your industry. You can also narrow down to the laws that apply to your business niche and know how they affect your operations and activities.
As a precautionary measure, it’s advisable to have a skilled business lawyer on retainer so that they can provide legal counsel on an ongoing basis. Choose a legal expert with skills in the areas of law most applicable in your industry, and always strive to be proactive to stay out of trouble.
Put Agreements in Writing and Maintain Accurate Records
Maintaining accurate business records and written agreements is another crucial step in protecting your business from lawsuits. Signed contracts can help resolve business disagreements by clarifying the rights and duties of each party if your company gets sued.
Consult experienced and knowledgeable business lawyers in Toronto to understand the various formal contracts you must have in place. These include employment contracts, sales, and supplier contracts. It would also help capture crucial details for every business transaction, such as the price and delivery date and products or services provided.
It’s in your company’s best interest to retain records related to business transactions, such as emails or phone conversation notes. These can be your source of solid defence if a conflict that leads to a lawsuit arises.
Provide Sound Training for Your Employees
Companies often overlook the importance of employee training, yet it is one of the strategies to protect a company from potential lawsuits. Having policies and procedures is not enough if employees are not educated on them and don’t understand why they exist.
It’s crucial to ensure employees adhere to the rules governing your business. More importantly, check to see that they don’t engage in conduct that could lead to liability for the company.
Business Insurance is a Must
In addition to the above steps, civil litigation lawyers in Ontario also advise business owners to have insurance coverage for various claims that could arise. Some of the most common insurance policies are:
- Professional liability insurance, which covers the costs of a lawsuit if a business is sued for being liable for the financial loss of another company
- General liability insurance that covers legal fees for personal injury lawsuits
- Malpractice insurance, which covers the legal costs for negligence by professionals
- Workers’ compensation insurance, which covers costs when an employee sustains injuries at the workplace
- Commercial auto insurance for costs of damages resulting from work-related auto accidents.
Your Toronto business lawyers can help you determine the most suitable type of insurance for your business. They can also direct you to reliable business insurance providers for the most suitable policies for your business.
What Should I Do If My Business Gets Sued?
Despite taking all the precautionary measures, your business may still face a lawsuit at some point in its business life. If this happens, consult civil litigation lawyers in Toronto as soon as possible. Ensure you preserve all the evidence you might need in the case to defend your business from the claims.
An Experienced Business Lawyer Protecting Your Business from Lawsuits
As a business owner, you must take various steps to protect your company from potential lawsuits. There are many ways to achieve this, but establishing a lawyer-client relationship sums them up. A skilled and knowledgeable lawyer can always check to see that your business is on track and well-protected legally.
Our business lawyers can assist you with your business legal needs. We strive to help our clients find creative solutions for their legal business issues, whatever it is. If you’re facing a lawsuit, let us provide the legal representation you need through the process and also guide you on how to protect your business in the future. Call K&Y Law P.C. at 905-597-8529 to schedule a FREE consultation.