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Reducing the risk of getting sued as a small business

On Behalf of | Oct 23, 2019 | Business Law Litigation

When small businesses get sued in Florida, it may feel like the end of the world. If the accusations are false, then the lawsuit feels even more unfair. Forbes estimates that each year, up to 53% of small businesses get dragged into some form of litigation. Overall, about 90% of all businesses have faced litigation at some point in time. 

Thankfully, there are things business owners may do to avoid getting sued altogether. While there are no guarantees, any ethical methods that may mitigate risk may be worth considering. A good start-off point is the use of contracts and other forms of documentation, such as employee handbooks and official reports on particular incidents. 

Some managers also hire intellectual property lawyers to audit their business for a flat fee. During this audit, the attorneys look for weaknesses in a business’s protection of its own intellectual property. They also identify ways that the business may violate another entity’s copyright laws and put itself at risk of getting sued by someone else over the use of their IP. 

CNBC notes that many businesses may decide to sue customers for bad reviews posted online. Some of these people faced litigation after sharing their negative reviews on TripAdvisor, Yelp and Google. The most common claim businesses make in this scenario is defamation. 

While most customers are individuals, some companies serve small businesses. When these businesses leave negative reviews from the company accounts or on their own website, they may also find themselves the target of defamation lawsuits. While honest reviews play an important role in good business, it is important to choose the wording carefully to reduce the risk of retaliation. 

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