As a business owner, you can’t have helped noticing the number of compensation claims, lawsuits and employment tribunal cases appearing in the news. Many speculate that we are now living in a ‘compensation culture’, where anyone disgruntled with anything can and will sue for damages.
Small businesses are particularly at risk, as they don’t have expensive legal teams or endless funds to deal with compensation claims. A lawsuit can arise unexpectedly and for a number of reasons. For example, you could be sued because:
• An employee feels they were mistreated or discriminated against whilst at work.
• A former employee claims they were unfairly dismissed
• An employee injures themselves whilst at work, and you can be held liable
• A product your company makes injures someone or causes other damage
• A client is unsatisfied with the standard of service your company has provided
• One of your employees makes a crucial mistake or loses an important document
Your business could be at risk from any number of legal issues besides these, which is why it is important to take precautionary measures. Before you have to shell out for litigation costs or compensation payments, it is recommended that you consider one of the many comprehensive professional indemnity insurance policies available for small businesses these days.
These products have been created as a response to the risks that small businesses face, so make sure you take advantage of them. For further information, please contact a member of our team.