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4 Ways to Protect Your Business from Frivolous Lawsuits

May 15, 2020

Frivolous lawsuits can take a serious toll on business owners in terms of time, money, and stress. Even the most baseless claim can have very real consequences for the future of your livelihood and financial stability. Fortunately, there are many ways of protecting your business from frivolous lawsuits. Consider the following suggestions as you develop a proactive risk management strategy.

Install a commercial security camera system

An effective way of enhancing your company’s risk management strategy is to install a business security camera system.

Businesses often rely on security cameras as a deterrent to potential thieves. However, they can also help prevent frivolous premises liability claims, or secure a dismissal of a lawsuit. By reviewing the footage, your legal team can get to the truth of what really happened during an incident, which can expose a fraudulent lawsuit for what it really is.

Obtain a liability insurance policy

Every business owner should have liability insurance. Even if you already do, it’s worth double-checking your policy to ensure you have enough coverage. At the very least, you should have a general liability insurance policy. This offers coverage for lawsuits filed with regard to property damage, bodily injury, and advertising injury. In addition, business property insurance will provide premises coverage.

Retain a business law attorney

There are many types of frivolous lawsuits beyond those involving slip and falls, and other types of personal injury claims. In addition, business owners must consider the possibility of an HR issue, such as harassment, discrimination, and wrongful termination, as well as claims of breach of contract or theft of intellectual property. To guard your business against these types of lawsuits, it’s helpful to consult a business law attorney.

A knowledgeable corporate lawyer can review contracts, draft HR guidelines and employee handbooks, and consult on intellectual property issues. By turning to a business law attorney for assistance, your company may be able to avoid potential liability.

Train staff members on how to properly respond to customer accusations

Train employees so that they know how to respond when a customer threatens to sue. The responding employee should remain calm, avoid making any accusatory remarks to the complainant, take careful notes about the allegations, and be sure to record the customer’s contact information.

Consider consulting an attorney to assess the merits of the claim and your legal options.

Consult the security camera experts for customized solutions

Maryland Security Professionals specializes in customized security solutions that offer reliable risk management to businesses. Our state-of-the-art commercial security camera systems protect your business from frivolous lawsuits by providing definitive proof of what actually occurred on your premises.

Call us today to schedule a complimentary security audit. We are pleased to serve commercial and residential clients in Maryland, West Virginia, Virginia, Delaware, and throughout the mid-Atlantic region.

Additional resources on business liability:

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