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Are There Reasons for a Small Business to Have a Lawyer?
Cameron Hawkins • March 29, 2024
Importance of a lawyer for a small business

Small businesses operate in a dynamic and often unpredictable environment that comes with various challenges that may require legal action. Not all legal challenges facing businesses are the same, and it may be in your best interest to work with attorneys practicing in different areas of law to handle issues. For example, the attorney you use to pursue delinquent payments from clients may be different than the lawyer you call if you’ve received a notice of claim letter.

While many small business owners may overlook the need for legal counsel until something goes wrong, knowing who to call when an individual or business is threatening your livelihood can offer numerous benefits.


Ensuring Your Interests are Protected


One of the primary reasons for small businesses to have a lawyer is to ensure that their interests are protected. While insurance companies provide valuable coverage and legal representation in certain situations, their primary obligation is to their shareholders. Depending on the situation, those interests may not always perfectly align with the best interests of the insured business owner.


For instance, when faced with a liability claim, insurance companies may prioritize minimizing costs by settling quickly. While this approach may benefit the insurance company's bottom line, it may not make sense to a business owner who believes they are in the right and doesn’t want the tacit admission of fault a settlement might imply, especially if there’s a risk for reputational damage.


By having a dedicated lawyer who represents their interests directly, small business owners can ensure that their rights are upheld, their priorities are advocated for and their long-term interests are protected.


Aligning Priorities in Legal Matters


Another crucial benefit of having a lawyer for small businesses is the alignment of priorities in legal matters. A misalignment of interests between the business and its insurer can potentially lead to conflicts or misunderstandings, particularly in situations where the insurance company's decisions may impact the business owner's reputation, finances or future operations.


For example, suppose a small business faces a lawsuit from a customer who suffered an injury on their premises. The customer is seeking compensation for medical expenses, lost wages and pain and suffering. From the insurance company's perspective, an expedited settlement may be seen as a cost-effective solution to resolve the claim and avoid the uncertainty and expenses associated with prolonged litigation.


However, for the business owner, the primary concern may not solely be about minimizing financial costs. They may also be concerned about protecting their reputation, maintaining customer trust and avoiding adverse publicity that could harm their business in the future.


They may also be far more familiar with the customer bringing the claim, their property, the behavior and training of their employees and believe settling what they perceive to a be frivolous injury claim will just encourage similar claims against their business in the future.


While a quick settlement may offer short-term financial relief, especially if the insurance company is willing to cover most of the payment, it may not fully address the business owner's broader concerns or protect their interests in the long run.


By obtaining a lawyer who is solely focused on representing the business owner's interests, small businesses can ensure that all of their concerns are heard and their priorities are respected throughout the legal process.


Proactive Risk Management and Legal Compliance


Besides addressing specific legal matters, having a lawyer can also help small businesses proactively manage risks and ensure legal compliance. A skilled attorney can assess potential risks, identify areas of vulnerability and implement measures to mitigate legal exposure.


Some common business risks attorneys can help mitigate include:


  • Contractual Risks: A lawyer can draft, review and negotiate contracts to ensure that the business's interests are protected and that contractual obligations are clear and enforceable.

  • Employment Risks: A lawyer can help businesses establish employment best practices, develop employee handbooks and policies and navigate complex labor laws to minimize the risk of litigation and regulatory violations.

  • Intellectual Property Risks: Lawyers can conduct IP audits, register trademarks and copyrights and enforce intellectual property rights to protect the business's valuable intangible assets and prevent infringement by competitors.

  • Regulatory Risks: Small businesses must comply with various federal, state and local regulations governing their industry, including health and safety standards, environmental regulations, data privacy laws and licensing requirements. A lawyer can help businesses navigate the regulatory landscape.


By having a lawyer who is well-versed in legal regulations and best practices, small businesses can operate ethically, responsibly and in accordance with applicable laws and regulations.


Committed to Defending Atlanta Businesses Facing Litigation


Are you facing legal challenges or disputes in your business operations? Don't navigate the complexities of commercial litigation alone. The Law Office of Cameron Hawkins in Atlanta is here to provide the expert legal counsel and representation you need.


Schedule a case evaluation today by calling 678-921-4225. Cameron Hawkins is committed to handling your case with professionalism, diligence and thorough attention to detail.

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