How would you protect yourself from frivolous lawsuits if you own a small business?
Answers:
Register an LLC will be a good idea for legal purposes.
Have a contract with your client and then have valid procedures in your contract that will stipulate the procedure for when something like this might happen.
Work out that you and the client will meet the moment something happens, file a police report, have the matter investigated but that the contract is still binding and that the client, if he wishes to get out of it [repute] there are certain things that will have to happen first.
Something in that line. You don't need to get lawyers too involved in this. Build a good name for your business and stay in contact with the clients - client service. See if they are happy and keep communication channels open with them. Much easier to deal with that rubbish when you are in touch with people.
First of all, you need to be bonded and have a good record. Secondly, you can get small business insurance.
Apply for an LLC license. NOW! It separates you from your business in case someone files a lawsuit against you.
Incorporate the business so they can't come after you. Don't bother with insurance, don't invest any more than you have to in the business. When they try to sue you they will see that you don't have any money. Then bankrupt the business, and start another one. Lawyers do it here all the time. Learn how to file the paperwork for the courts yourself, you don't need a lawyer for that.
Take them to court if they don't pay. I hope you had the foresight to have them sign an agreement, otherwise its your word against theirs.
a lawyer, insurance and cameras everywhere , its what my old job had to do when I worked in a bakery, it cost them an arm and a leg but they stopped getting the lawsuits about plastic gloves inside the cake . We didn't even use plastic gloves but that didn't stop them from there nonsense until we got tough .
Is there anysuch thing as a frivolous lawsuit?
If you have a business your reputation has to remain the most valuable item.
If your clients are accusing you then the onus is on them to prove their claims.
If they make false claims then, they have to compensate you.
As an employer you owe it to your staff to keep the business going and not duck your responsibilitys (as some members answers are suggesting an easy way out to avoid responsibility.)
If your clients, owe you for service provided then you have recourse to sue them.
The law exsists to help people and not just make lawyers rich.
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