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Protecting your small business from potential lawsuits

On Behalf of | Aug 21, 2021 | Business Law |

Owning your own business in Oklahoma can be enormously rewarding. It can also be challenging, especially if someone decides to sue your company. You can protect your small business by being on top of things and preventing lawsuits before they happen.

Be careful about what you say or do

You want your business to have a good reputation. As a result, you and your employees should avoid making public announcements or doing anything that might not be legal. When you avoid comments that can be construed as slander or libel, you can potentially prevent business litigation. You should also avoid doing business with anyone who you believe to be involved in criminal activity or who seems to have the potential for it. Avoiding conflicts of interest can also benefit your business.

Separate yourself from the business

You should avoid being a sole proprietor so that you can separate yourself from your business. This can help you to avoid business litigation as the owner of a company is often the target of a lawsuit. You could end up losing assets as a result.

You might want to consider having a trust own your business. It can keep your personal assets safe. Another option is to become a corporation to keep your business finances separate from your personal finances.

Get insured

Insuring your business is essential when protecting it against business litigation. This should include liability insurance in the event that a customer has an accident while visiting your place of business. You will also want to invest in errors and omissions insurance to protect your company if you are accused of not upholding a contract.

Protect your files

You should also protect your business files. This means using antivirus software, a firewall, making regular backups and more. You should also invest in cloud software to have a virtual backup of your files, but you should have hardware backups as well.