A man browsing the internet looking for tips on preparing his small business for a lawsuit.

How To Prepare Your Small Business For A Lawsuit?

On Behalf of Thorsnes Bartolotta McGuire LLP
May 18, 2021

Unfortunately, many California small business owners falsely believe that only big businesses get sued. In reality, a large majority of small businesses are sued every single year. Knowing how to prepare your small business for future litigation can help to alleviate stress and give you peace of mind.


Business litigation typically is initiated by a disgruntled employee or customer. When employees have issues with their wages, workplace harassment or other violations of their employment rights, they’re likely to take up a lawsuit against your company. When it comes to customers, there is typically a large spectrum of reasons why they may sue your company. These range from discrimination to personal injury on your commercial premises.


The most important thing that you can do to help prepare your small business for a future lawsuit is to purchase insurance. There are many different types of business insurance out there that you can choose from. A general liability insurance policy can be a great place to start. You may want to look into more specific coverage for the specialized industry that your business operates in.

It’s a good idea to meet with an attorney so that they understand your business practices. This way, they can be more prepared to deal with a financial lawsuit in a quick manner if it happens in the future. Also, having an attorney allows you to have experienced legal help to answer any questions you have regarding employment.

Contrary to popular belief, many small businesses get sued each and every year. From disgruntled employees to upset customers, there are many liabilities that your business may face. By implementing the tips that were outlined above, you can help to better prepare your small business for dealing with any sort of lawsuit in the future.