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Top 5 Signs Your Business Will Be Sued

Some businesses are just designed to get sued. For some, its a cost of doing business, but for others, its an avoidable consequence. Watch for the warning signs and adjust accordingly.

Number 5: You Are an Industry Leader

The more success you have, the more that target on your back becomes more prominent. Being the best in your industry tends to attract unwanted attention.

Number 4: You Lack Trusted Legal Counsel

You have stayed  under the radar so far and depended on your internet law school skills until now. It is not a coincidence that many business often hire a lawyer for the first time after being served with their first law suit.

Number 3: You Are in a High Risk Industry

Some industries are just prone to law suits compared to others. If you do not know whether or not you are in a high risk industry or not than you are probably not in one.

Number 2: You Have a High Number of Customer  Complaints

This may be an obvious one, but its more than just bad business to have your own customers complain about your company.

Number 1: You Have High Employee Turnover

This is no doubt the most dangerous warning sign. In fact, you can get rid of the other warning signs and rename the article to “The Warning Sign Your Business Will Be Sued.” Turnover happens, but each time an employee is fired or quits it increases the likelihood of one of your employees coming back with a contingency fee lawyer who finds even the most minor violation to justify a full fledged law suit.

Top Floor Legal provides comprehensive legal protection for businesses by acting as its general counsel for a fixed monthly fee. As a mid-size business, you get the in-house counsel service without paying the six-figure salary.

Nasir Pasha, Esq.

Post by:

Managing attorney and co-host of podcast Legally Sound | Smart Business

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