How to Protect Your Business From Lawsuits
Hey Business Owner,
Happy New Year! Congratulations to you for taking the courageous step of starting and running a business! You could have easily spent your time doing something a lot less productive and purposeful, but you choose to contribute something of value to the world! So Congrats!!!
As we approach the start of 2023, it is important for your business to ensure you are taking the necessary steps to protect yourself legally.
Here are some key actions every business owner should take to avoid lawsuits in 2023:
NUMBER 1# Review and update your business contracts. As I love to say, “Every Single Business Relationship Needs a Contract.” As I like to say in another way, “PUT IT IN WRITING.”
Everyone you do business make sure you have a written contract with them. This includes contracts with employees, vendors, business partners, and customers. Make sure these contracts are in line with current laws and regulations of 2023 and reflect any changes in your business operations. You may already have a contract, but as I tell my clients, it is important to update it so you are given yourself the most protection. The contracts for your business should be a living document. This means that you are constantly updating your contracts every year to make sure it is factoring any issues you may have had last year. Remember when you worked so hard on that deal, so make sure you put every part of the deal in writing, so you can save yourself a lawsuit in the future!
NUMBER 2# Protect your intellectual property.
One of the sayings I heard growing up is, “a mind is a terrible thing to waste.” The book, “Think and Grow Rich” has sold over 120 million copies. It is one of the most popular books ever when it comes to business and money. Why? It is because it shows you the power of your mind. Your mind is truly a wealth machine. Good thing for you the law actually gives you an avenue for protecting your valuable ideas. As you were doing business in 2023, there may have developed any proprietary products, processes, or changed your business name and branding. If this is the case, it is important to secure the appropriate patents, trademarks, or copyrights to protect your intellectual property. Otherwise, you put yourself at risk of being sued or you having to sue someone else because they are stealing your unprotected intellectual property.
NUMBER 3# Lastly, but certainly not least, have a plan in place for potential legal issues.
I could have wrote you a 90 page book on how to avoid a lawsuit, but still there is no 100% guarantee way to protect your business from lawsuits. It is reported that the U.S. has the most powerful military in the world spending over 800 million a year. The reason for this is not because the U.S. wants to go to war, but the U.S. wants to be the most prepared country if they have to go to war. Further, just like anything in life, you want to give yourself the best chances to succeed. No business is immune to legal issues, so it is important to have a plan in place to handle any potential legal issues that may arise. You plan must include having money set aside for a potential lawsuit and insurance for your business. Finally, your plan must include having a legal team in place or having a relationship with a trusted legal professional who can provide guidance when needed.
By taking these steps, your business can protect themselves legally and reduce the risk of costly litigation in the future. If you are an Indiana business, do not hesitate to call Justin Camper Law, LLC, I would love to chat with you for free to help your business reduce the risk of a lawsuit! We take care of the legal side so you can keep your business dreams alive! Always remember, Stay Legal!
