If you own a small business, you may constantly be on the lookout for ways to save money -- shopping sales for inventory, relying on the labor of family members rather than employees, or even investing in automatically-dimming lights. However, all the penny-saving measures in the world may be invalidated when a customer or employee files a personal injury lawsuit against your company. If you're required to pay out a large judgment, you could find your business bankrupt. Read on to learn more about how you can insulate your business (and yourself) from potential liability. 

How much can be recovered in a personal injury lawsuit?

Unlike the U.S., which (absent state tort cap laws) does not place a maximum on the amount of compensatory damages that can be awarded to a personal injury plaintiff, the Supreme Court of Canada has capped the amount that can be awarded for pain and suffering at $340,000. This dollar amount is for only the most severe cases, so it's likely that a claim against your business would seek less than $300,000.

However, these pain and suffering funds aren't the only type of damages available to a suing plaintiff. These individuals are able to request reimbursement for any medical expenses associated with the injury (including ongoing expenses like physical therapy or follow-up surgeries), as well as lost wages and other costs. There is no cap on the amount that may be sought for these expenses, so you could find your business liable for hundreds of thousands of dollars in costs after a serious injury.

In some situations, family members of the plaintiff who have been required to quit their jobs or move to help physically care for the plaintiff as a result of the injury may sue you for costs associated with these changes. Although these claims are subject to a deductible of $15,000 (requiring the plaintiff's family member to pay the first $15,000 of expenses him- or herself), this deductible is waived if the claim exceeds $50,000 -- so there can be some incentive for family members to file for larger dollar amounts.

All this adds up to a great deal of potential liability for your business if an employee or customer is injured or made ill while in your care. Limiting this liability is key to ensuring the continued stability and solvency of your business. 

How can you minimize your business's liability for personal injury?

There are some things you can do to make your workplace safer for customers and employees alike. Making these individuals aware of potential hazards not only keeps them safer, but if a lawsuit is filed, helps you argue that the plaintiff was contributorily negligent and should not be able to recover any funds from your business. 

Invest in signage

By purchasing and displaying cautionary signage (like "wet floor" or "do not enter"), you can help minimize the risk of customer slip-and-fall injuries. If a customer is injured when a warning sign is present, it's unlikely your business will be held liable unless the creation of the hazard was particularly negligent.  

Train employees

By ensuring that your employees are well-trained in safety procedures, you'll be able to reduce the odds of them being hurt on the job. These employees can also help spot and fix hazards that may have escaped notice. 

Purchase liability insurance 

After taking steps to keep your employees and customers safe, you'll be able to purchase liability insurance that can help pay your business's legal fees and any settlement or judgment costs stemming from a personal injury lawsuit. This insurance is made more affordable when you can show efforts to reduce your liability risk. 

For more information and tips, you may want to work with a lawyer from a firm like Stephens Holman Devraj Barristers & Solicitors. They can tell you more about you can best avoid accidents on your property and how to deal with injury cases if any do occur.