Lawsuits – Four Steps to Protect Your Business

Most startups fail within the first ten years. Within the first five years, 50% have collapsed due to a lack of funding or market demand. What that proves is that a company lawsuit can be detrimental to small American businesses that are already struggling through the first few years. Those initial years of trading are the period where brands are most likely to make mistakes without realizing them.

Even established big brand names can fall at the hands of the American justice system. Protection and prevention are key – keep reading to learn how to protect a business against a lawsuit.

Get Clued Up

More often than not, brands find themselves in hot water because they’re not aware of the numerous business laws that protect consumers from wrongdoing. For example, did you know that companies can find themselves in hot water if their website isn’t accessibility friendly for people with disabilities? The Americans with Disabilities Act (ADA) released enforceable actions in their 2010 Standards for Accessibility Design. Fear not – brands like AccessiBe resolves accessibility lawsuit issues using artificial intelligence and a sophisticated product overlay.

That’s just one example of regulations many small brands aren’t aware of when initially designing a website. Other examples include trademark infringement, premises liability, and breaching contracts. Brands must get clued up about the various rules and regulations of running a business – there are tons of trained advisors on hand to dish out advice.

Protecting Business Image

Protecting your business image can help to protect against lawsuits. As a brand grows, it’s much easier to land in hot water because of what’s said or done. For example, H&M came under scrutiny after one of its adverts was perceived as racist – read about it here.

The image of a brand is critical. Brands should avoid making public announcements, releasing adverts, or conducting any business that the public might perceive as questionable. That also transpires into who a brand collaborates with. Sometimes, a less than an admirable third party that doesn’t play by the rules can cause unwanted hassle for brands.

Get Business Insurance

Business insurance is a great way to protect your business, believe it or not. Every business should have liability insurance – that helps to protect brands against lawsuits that involve damage or injuries to people or properties. Additionally, liability should be included in every contract. That will prevent companies from coming under fire if contracts don’t complete due to specific factors like supply chain issues.

Hire A Trusted Business Attorney

Every business should have a trusted attorney on hand. They not only deal with lawsuits should they arise but also help create contracts, adhere to government guidelines, and generally ensure a business is following the rules. They become a legal counsel to help with all aspects of the legalities of running a business. It’s almost essential that startups have a business attorney from the off.

Lawsuits are daunting and can ultimately be the demise of any brand. Over 100 million lawsuits happen each year against businesses in the US. Protection and prevention are far better than ignorance, especially as some of these lawsuits can amount to fees well into the thousands of dollars. 


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