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Take proactive steps when it comes to your company and lawsuits

Lawsuits are almost an inevitability when individuals start a business. Numerous factors could result in a client, customer, partner, another business or other person or entity becoming disgruntled with your business in such a way that it may take litigation to settle. While you should certainly look forward to business growth and successes, you should also keep the potential for conflicts in mind.

Rather than just sitting back and waiting for someone to file a lawsuit against your company, you may want to take a proactive approach, work to lessen the likelihood of claims and protect your interests in the event that a lawsuit does come against your company.

Liability insurance

Just like you have insurance for your vehicle in the event of an accident, you should obtain liability insurance for your company. This type of insurance can help in cases where a person may file a legal claim against your company in hopes of obtaining compensation. For instance, if a person suffers injuries due to falling on your company's premises, this insurance could help cover payouts awarded to the party. Insurance could help keep your business from suffering a major financial blow due to this type of incident.

Actions and announcements

Your actions as a business owner can greatly impact the chances of a lawsuit as well. If you carry out questionable practices or associate your business with a company that does, you may open yourself and your company up for lawsuits from a number of parties. Additionally, if you make a negative comment about another person or entity, you could end up facing a suit for libel or slander if the other party feels that your comment has damaging impacts.

Business entity

Because a considerable possibility exists that lawsuits could come against your company, you may want to distance your personal liability as much as possible. Rather than opting for creating a sole proprietorship, you may want to consider business types where the company faces more liability than you do on a personal level. This could help protect your assets should the company receive a negative outcome in a case.

Legal counsel

Of course, one of best moves you could make to protect your interests and your company's interests is to have a knowledgeable attorney on your side. This legal professional can help you fight through any lawsuit that may come against your company and better understand how to take proactive measures when facing the possibility of litigation.

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Reid Burman Lebedeker
Esperante Building, Suite 1160
222 Lakeview Avenue
West Palm Beach, FL 33401

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Phone: 561-659-7700
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