How To Reduce The Risk Of Business Litigation

Brad Smith • September 30, 2021

While business is quiet, you can ensure you have policies in place to reduce the chance of litigation destroying your business. Here are some things you should consider.

1. Do You Have The Correct Insurance For Your Business?

Check your insurance coverage carefully. Many startups opt for cheaper insurance to reduce premiums. If it does not provide adequate coverage, it could be a false economy.

2. Update Your Training And Staff Documentation

Lawsuits can come from staff as well as customers. Do you have clear policies in place to deal with issues such as discrimination?

3. Put A System Of Controls And Checks In Place

Trying to defend yourself by saying you did not know about an issue will fail if a judge finds you should have known. It is very important to document your processes should an issue of this sort arise.

4. Improve On The Little Things

For example, that corner of the carpet could trip someone up. Taking five minutes now to tack it down could save you time and money later.

5. Make Sure To Think Long Term

Many business lawsuits could have been avoided if the response to the initial complaint was different. Sometimes, all people want is an apology and a solution.


If you find yourself facing business litigation, seek experienced legal counsel. Knowing how these matters work is essential to minimize the consequences for your business.

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