Business litigation is an expensive use of both time and money and should be avoided whenever possible. Even the most favorable of settlements can cost a business months—if not years—of productivity and focus. To avoid the high costs of litigation, follow these six preventive steps:
- Don’t skimp on contracts. Instead of spending a fortune on legal fees when facing a lawsuit in the future, make a smaller and smarter investment in solid contracts and getting clear on agreements up front in the present.
- Audit your insurance policies. Ensure that you have the breadth and depth of coverage your business needs to be protected. Consult with a lawyer to help you decipher how to protect your business best using the right kinds and types of insurance, so that if a lawsuit does happen, you aren’t footing the legal bill.
- Keep good records. Simply producing key documents can easily thwart expensive, time consuming lawsuits. Keeping excellent records now can help save money on future litigation. We offer a LIFT records binder to support you in keeping the right records, and letting go of the rest.
- Hire, train, and manage your staff with processes and procedures that mitigate the risk of future lawsuits.
- Be proactive. Small disputes can quickly turn into full-blown suits. Deal with minor disputes early to avoid a trip to court. Contact a lawyer at the first rumblings of a disgruntled client, vendor, or partner.
- Only enter into win/win agreements. Commit to caring as much about the outcome with the person you are contracting with as you do about the outcome for yourself. We can help you with that when we are working with you to strategize the documentation of your agreements.
With careful preventative planning, you can safeguard your business against unnecessary and costly litigation.
Protecting your business and your time is a strategic and valuable practice. If you’re ready to take the next step toward preventative planning, start by sitting down with a legal professional. They can help guide you in making the difficult decisions you face every day as a leader in business, including how to safeguard your business against legal risks.