When you own a business, you may not immediately think about dealing with a lawsuit. However, lawsuits occur every day, and no business is immune. The best way to protect yourself and your business against a lawsuit is to be proactive. Below are a few steps that you can take to help:
- Keep records of everything. Be sure to track transactions and purchases, and document company rules and procedures. These can be used to pinpoint the source of any discrepancies early on in a case.
- Follow rules and regulations. When you follow the law for health codes, wage and hour requirements, and taxes, your company is far less likely to be faced with a lawsuit.
- Clarify roles in a business. Take time to explain an employee’s roles, limitations, and responsibilities early on. Communicating and implementing necessary procedures can help avoid possible lawsuits.
- Stay up-to-date on law changes and new regulations. It isn’t enough to understand the laws and regulations that applied when you first opened your business. You need to stay current on these laws as they change over time. Hiring an experienced business attorney to update you on any changes relating to your business may save you time and protect you from a legal suit later on.
- Invest in a good insurance plan. Good insurance plans can help you pay legal fees and can even cover judgments if your company is held liable for a claim. Some plans to consider include workers’ compensation, product liability, and indemnity.
- Separate your company’s revenue from your personal assets. Doing so can protect your business in the case of a divorce or a workplace injury suit. You can legally establish your business as a separate entity by declaring it as an LLC, company, or non-profit.
When you own a business, you need to be prepared for issues to arise, including lawsuits. If you’re faced with a lawsuit, contact our experienced Rhode Island business attorneys.