When operating a small business, you have a lot of responsibilities. Aside from managing your customers and operations, you may have to attend to real estate and vendor contracts, client service and employee agreements, and other business-related tasks. With all of this going on, being sued may be the last thing on your mind. However, lawsuits are more common in the business world than some might expect. In fact, 35 to 53% of small business owners are sued each year. Given the prevalence of small business litigation, it’s important to know: Are you at risk?
The Likelihood of a Small Business Lawsuit
Approximately 90% of businesses will be sued. Additionally, 35 to 53% of small business owners will also be in litigation. Therefore, statistically speaking, if you are operating a business, there is a strong likelihood you will be served with a lawsuit at some point. Although these numbers may be disheartening, it’s important to know that not every lawsuit will be successful. Further, there are ways to mitigate the risks of your small business being sued.
Not Every Lawsuit will be Successful
Let’s face it, being sued can be scary and stressful. Understandably, after being served with a lawsuit, it can be hard not to imagine the worst. However, it’s important to know that being sued does not automatically mean the other party has a valid claim.
People can sue for just about anything. However, that doesn’t mean they have filed suit properly or on time. Additionally, you may have been sued for something that can be easily disproved. Further, the other party may not have legal grounds for their action.
Lawsuits Have Deadlines
It’s important to know that lawsuits have deadlines, and even if you believe a case is invalid, you must act promptly after being served. If you have been served or otherwise presented with legal documents, you should contact your small business attorney immediately. Your lawyer can review the papers, help you understand their meaning, and determine your next steps.
Mitigating the Risks of Being Sued
As you have probably learned in operating your business, it’s important to plan for every contingency. It may help if you think of being sued as just one of the many possible events that may occur. As with anything, the more you can anticipate and prepare, the better. The best way to assess your small business’s risk of being sued and plan for the future is by working with an experienced small business attorney. Your small business attorney can help you review your practices and operations and develop comprehensive protective strategies.
Protecting Your Small Business from Breach of Contract Claims
The majority of business-related litigation concerns breach of contract disputes. These types of disagreements can often be avoided with negotiation and careful drafting. Your small business attorney can help you:
- develop necessary contracts and agreements
- negotiate clear and beneficial terms that protect your interest, and
- ensure your agreement is properly drafted.
Having well-drafted contracts can help you, and the other party understand your mutual expectations and avoid conflict. However, even when an agreement is properly constructed, there can be situations when something prevents you or the other party from fulfilling its terms. In this circumstance, it may not be necessary for the matter to escalate to a lawsuit. Instead, you and your small business attorney can work together to assess the situation and identify your alternatives.
Contact a Small Business Attorney
While you can’t be 100% certain you won’t be sued, you have the power to ensure you can protect yourself by working with a small business attorney. You don’t have to risk going it alone. Contact an experienced small business attorney today to discuss ways to protect your business and plan for the future.
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with commercial leasing, business, and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.