Oklahoma small business owners tend to be concerned with revenue, marketing and sales. However, many will face a lawsuit at some point. Understanding what happens in the event that you get sued can help you know what to do if you are served with court papers.
Lawsuits can be for a variety of factors
Small businesses are sued each day for different reasons. Some of the most common occurrences include non-compliance with federal regulations, product defects and breach of contract. Most of these lawsuits will be from former employees and customers.
One of the most common forms of business litigation is employee litigation. In fact, a recent study has revealed that one in every five small businesses will face employee litigation at some point. The average cost to defend a small business, in this case, is around $125,000. Some common types of employee lawsuits include wrongful termination, workplace harassment, EEOC violations, and wage and salary violations.
Tips for minimizing the threat
While lawsuits will always be a threat against small businesses, there are some things that you can do to minimize that threat. First, consider having insurance. Most businesses can be covered by general liability insurance. This can assist in decreasing the financial repercussions to your business.
Second, have a go-to legal representative. There are many laws surrounding small business operations and employment. Do yourself a favor and have a lawyer already on speed-dial. This way, they’re already familiar with your business and they can provide you with more preventative measures.
Getting sued is not something that anyone wants to deal with. Unfortunately, it does happen. As a small business owner, it’s your responsibility to minimize your risk and understand what to do if a legal suit happens.