5 ways to protect your business against being sued by the public

1. Get appropriate insurance cover
If you work with any third parties (clients, customers, the general public, suppliers etc.), then it’s highly advised that you get Public Liability insurance cover, pronto. So, I hear you ask – what is Public Liability insurance, and why do I need it?

For example, if a customer were to fall and injure themselves on your premises, and the fall was found to have been caused by your company’s negligence, then they would have recourse to claim against if your company. If you have Public Liability insurance and this happens, then you’d be covered.

2. Watch what you say and how you do business
Know what you can and can’t say verbally and in writing. Avoid making any public announcements, and writing emails or letters that have the potential to be considered libellous or slanderous.

Avoid conflicts of interest. For example, if you were a member of the local council and you helped pass local legislation that meant your business would reap the benefits from the outcome, you’d get into serious trouble if anyone thought to question it.

Steer clear of doing business in ways that might be called into question, or associating yourself whose business practices have been – you could very easily be considered guilty by association.

3. Hire a good solicitor
It’s highly likely that you’ll have to call on your solicitor for advice at some point (probably several times, realistically). Thus, it’s vital that you interview a range of solicitors before you decide to employ one and that they’re familiar with local legislation and the legalities of your industry. Trustworthy business contacts and your local chamber of commerce are two good places to get recommendations.

4. Tailor your contracts
If something beyond your company’s control makes it impossible for you to fulfil the terms of your contract with a customer or client, such as an act of God, then tailor your contracts to stipulate that your company would not be liable for any losses under these circumstances.

5. Backup
If a computer system were to monumentally fail, your business is likely of being at risk of not being able to fulfil a contract, while valuable and sensitive information could also be subject to loss, theft or damage. Therefore it’s highly advised that you perform daily, weekly or monthly backups (whichever you deem most appropriate), and keep these backup files offsite or in a fireproof safe onsite.