Post written by
Doug Bend
Doug Bend is the founder of Bend Law Group, a law firm focused on advising small businesses and startups.
Our firm has counseled hundreds of business owners. But the ones who sleep best at night are those who have made strategic legal and insurance investments to protect their business and personal assets. That’s why we recommend the following four layers of defense for small business owners:
1. Exceptional Customer Service
It’s hard to overstate the amount of litigation that could be avoided by great customer service. The saying “penny wise and pound foolish” is never more true than when it comes to a customer potentially suing you for negligence. All it takes is for an unhappy customer to complain to an attorney at a cocktail mixer who responds, “You should sue!”
The least expensive legal defense you will ever pay is apologizing and comping a product if a client is unhappy. If a customer was harmed at your business, apologize and be quick to fix whatever might have caused the injury, and err on the side of reimbursing the customer’s reasonable, documented expenses.
By doing so you will not only prevent potential lawsuits, but you might turn what could have been a 1-star Yelp review into a 5-star review.
2. A Solid Contract
Not every dispute can be solved with an apology or a free product or service. If that first line of defense fails, it’s important to have a solid contract in place that plans ahead. Think of it as a chess game for worst-case scenarios. This way, you’re able to tell customers, “We’re sorry you’re still unhappy, but Section 17 of our services agreement clearly provides that our liability is limited to X amount.”
