Consumers and businesses are at risk of fraud, which can include anything from credit card abuse to breaches in network and computer security. Whatever the case maybe, it is up to you to protect your business from such fraudulent activities. The larger number of workers you will employ will put you at a higher risk of fraud, since so many people are dealing with your business operations. Below, you will discover several ways to protect your business from fraudulent lawsuits.
Frivolous Fall Claims
If you own a brick and mortar establishment, you probably deal with a large number of clients and consumers on a daily basis. While it may seem like a rare occurrence, there are thousands of scammers that file frivolous fall claims each year. Large corporations, such as Wal-Mart, Target and Home Depot have been caught in the middle of a lawsuit, where a customer alleges a fall occurred in these establishments. While these companies will immediately try to solve the issue, by offering to cover the healthcare costs, some customers are looking for a larger payout.
If you find yourself battling a civil lawsuit, you will need to hire an attorney. You better bet that the complainant will have a reputable personal injury attorney on their side.
Get It In Writing
Believe it or not, a lot of lawsuits stem from a company’s failure to construct a strategic contract. A contact can truly go a long way towards protecting your business from malicious lawsuits. Anytime you enter into business with another company or a consumer, it is wise to get everything in writing. Client credit agreements, vendor contracts and everything else should be specifically taken down in writing and signed by both sides of the transaction. A handshake might get the project underway, but a verbal agreement will be quickly voided when a lawsuit is filed. Protect your business by getting everything on paper.
Protecting Your Company’s Data
Over the past few years, cybercrime has continued to grow. This is now a major problem for all companies, regardless of size. If your company’s data is left unsecured, it could easily be taken by someone with nefarious intentions. And of course, your company will be held responsible when the client’s data is stolen and used in a criminal manner. With this in mind, it is pertinent to protect your data as much as possible. Proper data security will greatly limit the degree of risk your company takes when storing your client’s information.
The bad news is that all companies in this day and age are open to lawsuits. Whether you work online or own a physical establishment, there is a possibility that your company will be hit with a lawsuit at some point in the future. The good news is that there are ways to shield yourself from financial risks. By obtaining the proper insurance, you will be able to protect your business from lawsuits in a big way. Depending on the specific type of insurance you obtain, you will likely be covered for legal fees as well as any settlement that is awarded to the plaintiff. While the cost of insurance can be expensive, it will still prove to be well worth it in the long run.
Separating Your Finances
It is absolutely essential to separate your business income from your personal finances. Keeping both in the same account will make things more complicated, while simultaneously putting your personal assets at risk. By keeping these two separated, you will be able to protect your personal assets should you wind up getting sued in the future. This is one of the reasons it is a good idea to incorporate your business or establish a limited liability company.