Preparing Your Small Business in Dallas, TX for the Possibility of Lawsuits

Entrepreneurship involves expanding the reach of your products and services. Imagine, your cupcake business or your restoration company will go beyond thegavel and money confines of its Dallas, TX neighborhood. Although it gives you the chance to multiply your income, it also multiplies your risks and liabilities. There may come a point that your business (and by extension, you) will get sued. You will need to learn how to prepare your small business for such an eventuality.

Quote Texas guides you on how to prepare your business for the possibilities of litigation:

Review Your Liabilities

You need to check the vulnerabilities of your business by asking questions like:

  1. How can people get injured in my establishment or place of business?
  2. How can people get injured or harmed by my products or services?

Knowing the answers to these questions will allow you to get ahead of future problems. If you have a storefront and it isn’t slip-proof, you can immediately remedy this safety issue once you’re more aware of the possibilities.

Create a Formal Structure

If your company is just a sole proprietorship, your assets can be seized since your business is not a legal entity. By formalizing your business into a limited liability corporation or a corporation, your assets get shielded from litigation because a business’s liabilities are its own.

Write Contracts that Everyone Understands

You will need to create understandable provisions when signing deals or getting new employees. Business related litigations often stem from contract disputes. By making people understand what the agreements are about, you are protecting yourself and your business from problems arising from vague and faulty wordings in contracts. 

Seek the Advice of a Lawyer

Getting a lawyer to review your business also helps to cover you from vulnerabilities you may know little to nothing about. It pays to get law expert to know what statutes and regulations may or may not apply to your business.

Insurance Coverage

When it comes to actually shielding you when your business has to pay damages, nothing beats the protection that an insurance coverage brings. In case you lose the litigation, your insurers will pay the other party, saving you and your company from this cost.

Quote Texas advises small business owners to get a commercial general liability insurance in order to provide your business with coverage over injuries that your establishment, business, or service cause. Worker’s compensation insurance allows you to respond to emergencies involving your employees. We also have specific industry related policies and commercial insurance to help you manage against the particular risks associated with your kind of business.

If you need help with your insurance, come and talk to Quote Texas by calling 844-756-8684 or by messaging us through one of the forms in this site. We’d love to hear about your needs and help simplify insurance for you.