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Why small businesses get sued

When you run a small business in Florida, your focus is likely centered around the flow of cash, maximizing sales, keeping track of your employees and managing everything else to keep the company thriving. There’s plenty for you to do without worrying about getting sued, but that’s something you should think about sooner rather than later if you want to be prepared for the likely eventuality.

Most businesses get sued

Most small businesses are sued at least once over the course of their operations, so it’s nothing to fret over. But if you don’t face the reality and take the necessary steps to prepare, you’ll probably find it much harder to deal with.

If you’re not ready for it, a lawsuit can have a significant financial impact on a small business. It may put a serious dent in your operations.

Small businesses pay a big price

A lawsuit often takes a bigger toll on small businesses compared to larger ones. Big businesses often have their own in-house legal counsel. Getting sued is already in their budget because they expect it to happen from time to time.

Common lawsuits against small businesses are related to:

  • Employee relations
  • Breach of contract
  • Product defects
  • Regulatory non-compliance

There are many reasons why a customer might sue a company. Someone can file a lawsuit for not getting the advertised product or service. Slip-and-fall charges are also common, and so are more serious cases like discrimination.

Getting sued might not put you out of business, but it certainly makes it all the harder to grow and thrive. You can mitigate that risk by knowing how to deal with a lawsuit if it does happen and how to prevent the suits from happening in the first place.