Do Startups Need Lawyers?

Contrary to popular belief, a startup should be in touch with a lawyer. We would normally believe that keeping a lawyer is not required for startups and would be a waste of resources (which are anyways in shortage). However, I came across this article which mentions some very genuine and possible cases where a startup will need a lawyer immediately.


‘1. What if your product contains a defect that makes it hazardous?
As an entrepreneur, it is a great feeling to create and sell a product in the most ethical manner. Moreover, it is expected that entrepreneurs go a step further and stand by their product in the event of a defect.

If you are a food manufacturer, it is your job to recall any products that could have been at risk of being contaminated with E. Coli or Salmonella. Failing to do so will endanger your customers to falling ill and bring on a lawsuit.

However, there are isolated incidents, where a customer will sue your business for a perfectly legitimate reason.

2. What if your employee becomes a victim of medical malpractice and sues your business?
As an entrepreneur, nothing more is satisfying than having a team of happy employees. Their happiness is contingent on the work experience that you provide them as their employer. Work benefits play a significant role in maintaining employee satisfaction.

You cannot control every tidbit, but you can mitigate problems by giving your employees the best that you can offer them. As an employer, you can opt to give your employees the best healthcare plan. Alternatively, you can try to cut costs by giving your employees a lackluster healthcare plan.
Cutting costs on your employees' healthcare benefits could be one of the worst decisions for your business.

Employees expect their health to improve when they seek medical treatment. In some cases, the very opposite can happen. Did you mitigate your chances by offering your employees a healthcare plan from one of the best healthcare providers? Or were you so fixated on trying to save money?

If your employee feels that your thriftiness is more important than their well-being, they might not only sue the hospital for medical malpractice but also sue your business for subjugating them to a lackluster healthcare provider.

3. What if your customer sues you for giving them bad professional advice?
As an entrepreneur, it is wise to have business insurance. Unfortunately, many entrepreneurs run their business without obtaining an insurance plan.

Like product based businesses, it is just as important as a service based business to have a lawyer on standby.

Let's say that you are a health coach. What if one of your clients implements your health advice and feels much worse before consulting with you? If their condition is severe enough, they may feel justified to file a lawsuit against you.’


In such cases, is it better to already have a lawyer standing by or will you be scrambling in trying to find a good lawyer to handle the case.

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