If you have a valuable business, you are in risk of lawsuits for financial gain or as tool for competition. Every year about 40 million lawsuits are filed in United States courts and many of them are by customers or employees of businesses. There are thousands of law firms and attorneys who encourage and promote such lawsuits by their continuous advertisements on radios, televisions and in print. Many think of a lawsuit opportunity as a winning lottery ticket. Some! plan for it long before such an opportunity arise and when they become impatient, they simply fake an accident.
Businesses use different strategies to protect their assets against such lawsuits. Some of the well known and highly recommended strategies are:
- Form a company (legal entity) for your business operation in order to limit your personal liability and protect your personal assets.
- Purchase and maintain a number of different insurance policies to protect you and your business for injury claims and product liability claims.
- Be extra diligent in selecting your employees and your customers. Do hire irresponsible and high risk employees and do not accept high risk orders or customers.
- Maintain varieties of safety and security systems in place.