Being sued is one of the biggest financial risks a business owner can face. To protect your livelihood, it’s essential to have access to an experienced attorney who is well-versed in business law. It’s also important to take whatever measures you can to limit your business’ liability. The following are some steps you can take to reduce the risk of a lawsuit.

How to Avoid a Business Lawsuit

1. Buy Insurance

Most attorneys recommend carrying general liability insurance in case a lawsuit is filed against your company. This type of insurance covers compensatory damages, non-monetary losses, settlements, and legal fees for injuries, accidents, negligence, and other similar claims. Depending on the type of business you own, you may also need product liability insurance, which covers lawsuit-related costs over defective products, and commercial property insurance, which cover damages to your business’ physical property.

2. Make Safety a Top Priority

A great many lawsuits against businesses involve personal injury claims, and it’s your job as an owner to create an environment that’s as safe as possible. This may include the regular cleaning and maintenance of work areas, putting up clear signage around wet floors, broken steps, and any other area that may cause a slip and fall accident, or improving your company’s security with surveillance cameras, floodlights, and keypad entry devices.

3. Keep Detailed Records

No business is immune from a false claim being filed against them. But in most cases, you can avoid going to court if you have a clear paper trail that your attorney can present as evidence. This is one of the reasons why having a solid recordkeeping system is so important. Finalizing all contracts and documenting and saving all communication with clients and customers will make it much easier for your lawyer to get a false claim dismissed.

If you need an attorney with expertise in business law, get in touch with Lee, Livingston, Lee, Nichols & Barron, P.C. For more than 70 years, they’ve provided first-rate legal counsel to businesses and individuals throughout the Dothan, AL, area. From workers’ compensation and person injury claims to civil litigation and estate planning, the seasoned lawyers at this firm have experience in a wide range of practice areas. Visit their website to learn more and call (334) 792-4156 to set up a free consultation.