If you are in business there is always the risk of litigation and this can come from anyone of the public who may be injured on your business premises or suffer in some way from the goods you sold. It can also come from staff members who may have been injured while at work carrying out their duties.
Prevention is the best cure
The best way to cope with litigation is to prevent it from happening at all, by making sure that your premises are safe and meet all the Australian Standards required for your industry. It is also essential to have an evacuation plan and a plan for how to cope with any emergencies, such as a chemical spill or an accidental injury.
Then if litigation is the result, the courts will see that you did everything possible to make the workplace safe and this will work in your favour. Some accidents are truly accidental and nobody’s fault. Others are more the fault of the victim than the environment.
The other essential to have as protection against litigation is the proper insurances. It is as important to insure for the right amount as it is to have insurance in the first place. If you’ve only insured for a small amount that won’t cover your costs, you will not be able to use it to start up again, or to continue your business.
Even though there are many other costs to consider when running a business, and even though many other people try to save money by not taking out insurance, this is not the best way to conduct business. If you cannot afford insurance, then you really cannot afford to be in business. You need insurance as protection against fire, flood, theft, vandalism and other forms of loss as well as to protect you against litigation.
Even with insurance and the fact that you are innocent of wrong-doing, if litigation goes ahead it is going to be very stressful. It is important to find ways of coping with the stress that are not harmful. If you drink too much alcohol it will be bad for you and for the reputation of your business, not to mention your health. It will also reflect poorly on your capabilities and can be used to point the finger in a court case, even if it had nothing to do with the issue at hand.
So have professional counselling and be kind to yourself by choosing other ways to reduce stress, such as meditation or Yoga. Even jogging or other forms of exercise are good stress relievers. Surround yourself with trusted friends who will lift you up and understand, even if you cannot talk about the lawsuit to them.