Risk management – it sounds like a scary term, but the idea of learning to manage your risk allows you to identify potential issues for your business. One of those risks, of course, is civil litigation. Whether you are a sole proprietor or the owner of a large corporation, you face risk in your business. Here are a few ways to help you avoid litigation in your professional dealings.
Much of the litigation that happens in the business world centers around contracts. This is why it is critical for you to have airtight agreements when you enter a business relationship. The terms of your business deal should be carefully considered before you ever start working with a partner or client – otherwise, you could find yourself in court. Consulting with an attorney before work begins makes more sense than seeking help when a lawsuit erupts.
With this in mind, business professionals advise their clients to seriously consider their business partners. Simply choosing the wrong type of partner can lead to claims of professional malpractice and other business litigation. Even conducting a basic Internet search about the person or company for whom you may be doing work can be a huge benefit and save you headaches – particularly if that person or client has a poor reputation.
Finally, every business owner needs to carefully consider their insurance coverage to make sure they are appropriately protected for their business needs. Again, taking that time at the beginning of the process can save you from serious problems as your business ownership progresses. A team of qualified attorneys can be a valuable ally in helping you establish the business processes that will promote your company’s longevity.
Source: Westfair Communications, “Ten business practices to manage risk and avoid litigation,” Michael Freudenberg, March 17, 2017