How Can A Company Avoid Expensive Lawsuits From Third Parties?
Many companies never truly recover from certain lawsuits, and there have been instances where the company’s reputation is harmed beyond repair. These and similar instances are what sometimes cause a company’s downfall, and therefore it is always better to prevent lawsuits from ever happening than try to win them. But how? The text below will discuss some of the measures companies can take in order to prevent these misfortunes from ever occurring.
Keep track of your records and agreements
When it comes to resolving disagreements and outlining each party’s obligations in the event of litigation, signed agreements and meticulous record keeping can preserve your organization.
Lawsuits can occur over the smallest things, and sometimes simple misunderstandings without the proper evidence can be grounds for a lawsuit. First and foremost, always consult with your lawyer regarding certain issues, especially when it comes to formal contracts with your suppliers or employees. General agreements such as sales and other contracts you have obliged yourself to are things you should also let your lawyer take a look at first and then sign.
Make sure to keep a neat record of all business transactions and payments as well, and all your documents and signed agreements and contracts should be kept safe and categorized. This way, if someone tries to fail a lawsuit for whatever arbitrary reason, you can turn the tide very quickly by providing the needed evidence and documentation stating how you acted as agreed.
Secure your business with technology
Sometimes, an investment such as a security camera or moving sensors can be a lifesaver during accidents involving a third party. Lawsuits can generally occur even if your employees slip on a wet floor or claim to have slipped. The right way to prove such accidents and whose fault they might have been is by simply looking at the available video footage and making sure the party is telling the truth. For example, imagine your company has a vast distribution and transportation network and you own several vehicles, such as trucks, cars, or minivans. Accidents on the road happen quite often, even more than we think, and reducing the cost of a truck accident can be a lifesaver. By simply implementing GPS tracking cameras and video footage into the truck’s cabin, you can ascertain whose fault it was and if the third party is telling the truth or not.
Your footage is indisputable evidence, and you can build a counter-case based on it. It’s always better to avoid it than to engage in a lawsuit, as you’ll have to pay compensation to the alleged damaged party and you’ll harm your whole distribution network as well. These accidents can occur over the smallest things; the other driver might make a wrong turn to the left, and you now have to deal with the issue at hand.
Take care of your reputation
Since reputation is the lifeblood of businesses, it’s critical to act honestly in all interactions with coworkers, clients, rival businesses, and the general public. Though it might be tempting to “bend the rules” from time to time, we highly advise you not to. Instead, keep your promises and make sure to avoid any false advertising. If you agree upon something, keep your word and avoid possible lawsuits from competitors, dissatisfied customers, or your own employees.
Sometimes, keeping your public image intact is more important than any profit you could accumulate, as your public image is a shield and it actually helps your business grow. Every successful business is built upon trust and a sense of responsibility. If you cannot keep up with what you all said before, make sure to simply lower the bar and stick to the promises you can actually hold.
Avoid harassment and discrimination lawsuits
Many lawsuits are based upon the preservation of human integrity, and therefore discrimination and harassment lawsuits might occur if we don’t employ sound rules and business policies. We advise you to look into each of the many candidates who are applying for a job position within your company and to make sure your company’s policies are in tune with the preservation of basic human rights, thereby preventing any racial or other types of discriminatory behavior. This also includes making sure you acquire certain rules regarding religious holidays and dress codes to prevent any possible harassment issues. Make sure to provide culture-inclusive training for your employees and handle each matter with a lot of attention, as delicate issues can turn into a lawsuit over a wrong word.
Having said that, we can only advise you to research each of these actions, evaluate your existing situation, and decide if you think your business is adhering to all of these preventive measures or not.