How to Protect Your Business from Potential Lawsuits?
Our Morgan Law Group attorneys in Florida and California know that a single lawsuit initiated by a business partner, employee, or vendor can jeopardize the business you have worked tirelessly to build.
Part of the reason we partner with our clients is to help ensure they are protected from frivolous lawsuits that could cause irreversible damage to their partnerships, reputation, and bottom line.
Here are a few tips to help protect your business from potential lawsuits before you even open its doors.
Structure Your Business Properly
At MLG Business Litigation, our California and Florida attorneys provide flat rate fee business start-up and document review packages that ensure that your company is legally compliant with all state and local laws, and that all partnership agreements are in writing and legally binding.
All Other Business Agreements Must Be in Writing
Partnerships are not the only agreements that must be outlined in writing. All third-party contracts, including those with vendors and other important professionals, must be in writing, so they too are legally binding. This not only ensures each party understands their responsibilities but provides the opportunity for out-of-court dispute resolution should a breach of contract occur.
Keep Accurate Records for All Business Transactions
If you do not have an in-house accounting department, invest in an accounting system that will allow you to keep accurate business records. Even if you are the only employee, or if you share the office with just a partner, all personal and business finances must remain separate throughout the company’s existence. All sales, production or service costs, taxes, and other important financial information must be kept in detail, so you have records from all transactions.
The lack of paperwork opens the door to litigation. Keeping proper records allows you to be proactive, not reactive.
Practice Good Employment Practices
Business partners, vendors, and other third parties are not the only ones who can file a lawsuit against you. So can your employees.
Discrimination, harassment, and wrongful termination lawsuits are rampant in businesses across the United States. When you take the time to train employees in these important areas, distribute employee handbooks, and emphasize your commitment to good employment practices and behaviors, you minimize your risk for employment lawsuits.
Have Business Insurance Coverage in Place
Purchasing business insurance coverage is crucial to mitigate the financial impact of a potential lawsuit. An insurance policy can provide the necessary damages you owe a third party if you were to be held responsible for a financial payment after the lawsuit is filed. This coverage protects the future of your company too, as the business will not be responsible for the damages out of pocket.
Work with an Expert Business Litigation Attorney in Florida or California
Our Morgan Law Group attorneys in Florida and California help our clients understand the practical steps they can take to protect their businesses from lawsuits, before any potential litigation issues arise. Whether you are just getting started or would like to take a closer look at your business operations, risks, and legal vulnerabilities, call us today at (786) 706-9228 for a free case evaluation. We can help align your vision with a lawsuit-free future.