5 Easy Ways To Protect Your Business During a Lawsuit

Lawsuit

 

Nothing is worse for business owners than facing an unexpected lawsuit. While the thought of having to go to court is stressful on its own, the knowledge that the lawsuit can change the course of your business is far worse. Though you can’t guarantee that your company will never face some kind of legal issue, there are things you can do to protect your business both before and during legal proceedings.

 

This is what you need to do to keep your company safe.

1. Find a Good Lawyer

No matter what type of lawsuit you’re facing, you’ll need experienced legal representation if you want to make it through unscathed. They’ll be able to review your case, interpret the evidence mounted against you and craft the best arguments to persuade the court of your innocence. When searching for an attorney, try to find one that’s familiar with your business and industry. This way, they’ll be better equipped to understand the risks associated with your operation and the types of liability you might face. The court reporters Phoenix courts use record everything that happens in the courtroom, so make sure what they’re recording are the words of an experienced professional.

Suggested Reading : PROTECT YOURSELF FROM BUSINESS LAWSUITS: An Employee’s Guide to Avoiding Workplace Liability

2. Solid Liability Insurance

Every business faces some degree of liability. Liability insurance helps cover the cost of your court fees, attorney fees and any settlements assessed against your business. This helps reduce your out-of-pocket expenses if a customer or client sues your company. If you’re not facing a lawsuit, make sure you have liability insurance in place as soon as possible. If you are facing a lawsuit, you’ll need to wait until it’s resolved to apply for new liability coverage. Your insurance agent will be able to help you find the right policy for your business’s needs and liability risks.

3. Keep Good Records

The best way to present your case is to stay on top of your business’s bookkeeping and documentation. No matter what type of business you run, document everything you do. If a customer gets injured on the property, document the injury that occurred and what you did to assist the customer. If you go to clients’ properties to provide service, document every task you perform. The more you can document, the more you’ll be able to prove that you did everything within your power to reduce the risk your business poses to others. There’s no such thing as too much documentation when it comes to protecting your business from liability and helping the lawsuit go your way.

4. Separate Your Personal and Business Finances

As a business owner, the best thing you can do when starting your company is to separate your personal finances from your business finances. This helps protect your personal assets from getting seized in a lawsuit. If you haven’t already, take the time to create a dedicated business bank account and use it for all business-related transactions. If your business does get sued, the only assets up for the taking are those associated with your business. Your company should also be properly registered and incorporated with your local government. If you’re not sure where to start, speak with your attorney about the best options for your business and your needs.

5. Be Cautious About What You Say

One of the easiest ways to get into trouble when you’re facing a lawsuit is to say things that make the situation worse. Whenever possible, avoid admitting fault for any problem or issue. Document everything that happens, but encourage your employees to avoid saying anything that might incriminate them or your business. As soon as you receive notice of the lawsuit, talk to your attorney and ask them for guidance about how to respond. They’ll be able to review any statements before you make them to reduce the risk of you aggravating the situation.

Facing a lawsuit is something no business owner ever wants to deal with, but it can happen at any time even if you think you’re fully prepared. Keep these simple tips in mind and you’ll be able to reduce your liability risk and mount your case effectively.

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