It’s a little scary to think about how easy it is for a small business to get embroiled in a lawsuit. But, while you’ve probably heard about many cases involving large corporations, you’d be surprised how likely it is for a startup to fall flat due to a sudden lawsuit.
photo credit: SnapwireSnaps / Pixabay
Such claims can be stressful for new business owners simply trying to make ends meet. It’s not the kind of thing you can fight when it’s too late; it will have to run its course. Hence, it’s best to make prior preparations by learning about the types of claims you can face as a new business owner.
Here are some of the most common lawsuits companies can face.
1. Compliance Claims
Perhaps one of the most subtle claims is one that is based on compliance law. There are individuals with lawyers looking for websites that make the mistake of non-compliance, giving them a chance to issue a lawsuit and earn at the company’s expense. It’s one of those things that can blindside new businesses, which is why it’s best to build a framework for compliance as soon as possible.
ADA compliance is a recent, common example. Accessibility has become a hot topic in recent years as the world has been continually aware that its physical and digital worlds are hostile to those who have disabilities or require adjustments to comfortably access services and products. Major retailers have been brought lawsuits for inadequate websites.
To enhance accessibility, there are numerous available services that effectively address and resolve accessibility issues during a lawsuit, serving as a proactive measure to avoid such complications. David J. Shaffer and Kelley Brooks Simoneaux – lawyers for David Shaffer Law, PLLC – did research for which provider offers the most comprehensive and successful overlay to help companies become ADA compliant. They concluded that to deal with potential lawsuits accessiBe were highly proficient and comprehensive at ensuring a website is useable for those with different disabilities. What accessible show is both that there should be both a simple way for businesses to become compliant (a line of code inputted in their website) and complex enough to be inclusive of different disabilities.
Being inclusive opens companies up to a new demographic too, but, fundamentally, enables those who previously couldn’t easily navigate the web to be able to.
2. Employment Claims
Aside from compliance, one of the more common lawsuits comes from employment claims — the most common being sexual harassment lawsuits. These tend to be the ones that catch the most steam. Employment claims are not to be taken lightly, and it’s not easy for a company to come out unscathed from such a lawsuit.
Typically, the reason why such claims occur is due to negligence on the part of the business. It’s not something meant to trip up a company, such as compliance. Negligence can and will lead to employment lawsuits, which is why it’s best to keep on time with hourly wages. Any sort of mistreatment of your staff can be used against your business, and rightfully so.
Treat your team well, and they’ll do the same for your business.
3. Disputes from Written Contracts
You likely already know that any contract between your business and client is legally-binding. If you aren’t careful and violate those terms, the resulting lawsuit can be potentially disastrous for your business. It’s never a bad idea to prepare as much as you can when preparing contracts, as you could end up on the wrong side of a lawsuit if you make a mistake.
Conclusion
While there are lawsuits out there that stem from negligence, there are others that are more subtle, making it challenging for new businesses to realize their full potential. It would be wise to take the prospect of lawsuits seriously, as it’s not easy to get out of a claim you didn’t prepare for.
