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What are some ways to prevent business litigation?

Business owners in Jacksonville are hard workers who aim to ensure their business sees financial success. However, there are always hiccups in the process and sometimes a business is sued. However, there are some steps business owners can take to prevent such lawsuits from occurring.

First, business owners and employees should take care to avoid doing anything questionable. This includes any public statements made, as well as how the business is operated. Also, if a business works with another business that has a bad reputation, then their name could be associated with the other business's poor public image. Also, business owners and employees should avoid committing acts that may constitute a conflict of interest.

It can also help to have a good attorney on standby. An attorney can provide advice before a situation snowballs into contentious business litigation. Also, an attorney can help business owners make legally sound choices. An attorney will also be familiar with the laws and regulations that may affect the operations of the business.

Also, keep in mind that if a person is running a sole proprietorship, and the business is sued, the business owner may be personally liable. To avoid this, a person can place the business into a trust. That way the only assets that can be sought through a lawsuit are those that are possessed by the trust, rather than the business owner.

In addition, any business big or small may want to carry liability insurance. This could help if a patron is injured on the business property, if the business made a mistake or if there are claims a contract was breached. Also, when entering into a contract, provisions should be made stating that the business will not be liable for acts that are out of the business's control.

Finally, many businesses rely on computers in their day-to-day operations. Therefore, they should make sure their computer systems are safe from viruses. If business information is stolen, this could lead to business litigation.

So, there are ways a business can protect itself from being sued. However, should these measures fail and a business finds itself being served with a lawsuit, it can help to have an attorney on hand to represent the business's interests from the get-go.

Source: Investopedia, "Don't get sued: 5 tips to protect your small business," Glenn Curtis, Feb. 12, 2018

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