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5 Ways a Business Owner Can Prevent a Lawsuit


When you run a business, you undoubtedly have a lot on your mind. While a lawsuit may be little more than a passing thought, you should be aware that Miami, like any big city, is prone to a litigious culture.

If you’re not careful, you could be facing legal action before you know it. Nevertheless, there are some steps you can take to protect yourself from potential lawsuits.

1. Keep Contracts

Any time you make a deal, put it in writing, and be sure to abide by any agreement you make. While handshakes are meaningful, deals that are not legally documented could lead to misunderstandings and escalate into lawsuits.

Even if you don’t have an official contract, having a paper trail can help clarify any disagreements that may arise.

It should go without saying that honesty and ethics are tantamount to the success of your business, but these principles can also keep you out of hot water, legally. If you make a promise, keep it!

2. Be Someone You Want to Work With

When people enjoy doing business with you, they are less likely to sue you, even if a disagreement or misunderstanding arises.

Be kind and respectful towards your employees and anyone you work with and treat issues with urgency. Clear, regular, and written communication can diffuse problems before they arise and keep everything cordial and above-board.

3. Know and Follow Employment Laws

Florida law regulates minimum wage, overtime, meals and breaks, and nearly every other aspect of hiring and maintaining employees. You can find all relevant laws in Title XXXI of the 2019 Florida Statutes.

On a Federal level, employers often get into trouble for (unintentional) violations of the Civil Rights Act, the Fair Labor Standards Act (FLSA), and the Americans with Disabilities Act.

As long as you know and abide by employment laws at the state and federal level, however, you should not be at risk for a lawsuit.

If you’re having trouble understanding or applying any of the above laws to your business, know that an experienced employment law attorney can help.

4. Make Sure You’re Insured

Every business should carry insurance to protect itself against potential liability. This insurance can help you avoid litigation if someone slips and falls at your physical business location, or if a disgruntled employee or contractor files suit against you.

Depending on the size of your business, you may also need to carry workers’ compensation insurance to protect your employees in the event of an injury or accident.

Sometimes, you can eliminate a lawsuit altogether with a quick settlement or a well-established insurance process, and that’s exactly what these kinds of policies seek to do.

Another option to consider is equipping your contracts with an arbitration agreement, which can keep any future trouble out of court.

You can always discuss your insurance mandates and elections with a business lawyer.

5. Get to Know a Good Attorney

Speaking of business and employment law attorneys, you should be speaking to at least one of them regularly.

Larger businesses usually keep a lawyer on staff, but some firms, like KEW Legal® in Miami, FL offer general counsel services. This way, you do not have to maintain a full-time employee, but you always have someone to go to with legal questions and concerns.

Having an attorney help you draft your documents and agreements and mitigate legal risks is one of the best ways to avoid a lawsuit!

Bonus Tip: Get in Touch with KEW Legal® today!

Upon hearing all this advice, you might be looking for a savvy business lawyer. Fortunately, you’re already on our site!

Get to know our team of experienced professionals today with a phone call to (305) 990-2300 or a complimentary consultation (with a donation to the charity of your choice)!

You can also click here to start your journey with KEW Legal® right away.

We look forward to hearing from you!