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Safeguarding Your Company From Litigation

Posted on August 16th, 2022

Preventing liability should be one of the most important considerations for business owners. Not taking the steps to protect a business from litigation can result in legal issues down the road. It isn’t uncommon for business owners to consult with a legal professional, such as a business litigation lawyer Montana residents depend on at Silverman Law Office, PLLC, so they can understand how to go about safeguarding their company from disputes or accusations. Litigation can quickly erupt the success of a business, cause major disruptions to operations, and result in devastating profit loss. For these reasons and more, litigation should be treated seriously and resolved immediately.

Are verbal contracts legally binding?

Verbal contracts happen all the time between friends, neighbors, business associates, and family members. And while verbal contracts can be legally binding in some cases, it is strongly advised that a handshake agreement is followed up with a written document for both parties to sign. Have your lawyer draft legal contracts when working with other companies or independent contractors. Companies that fail to create reliable contracts are vulnerable to getting sued. Despite all parties having the best of intentions when committing to a verbal contract, it is an easy way for confusions and disagreements to occur.

Is it necessary that I have business insurance?

Business insurance may not help you avoid liability completely, but it can protect your assets in the event of a lawsuit. Being insurance helps your business cover liability costs and legal fees. Furthermore, some insurance policies protect companies from workplace injuries and employee lawsuits, while others focus on protection from client or customer accusations. After a review of your business model with a lawyer, such as a team member from Silverman Law Office, PLLC, they suggest what kind of insurance will be most suitable for you.

What records do I need to keep?

Every company should have an organized and accurate record of contracts, what was discussed during negotiations or meetings, and other transactions. Every communication, including text messages, emails, phone calls, and voicemails should be noted. Business-related records must indicate the details of every transaction, the products or services discussed, contract responsibilities, and other such matters.

Does every business need policies and procedures?

No matter what business field you are in, every company must have a set of policies and procedures to follow, as having these documents can help prevent lawsuits from arising. It can also instruct staff on how to protect your company, assets, and intellectual property. It doesn’t matter how many staff you hire, as even a couple here and there should be provided an employee handbook so they can understand what is expected of them.

It can already be hard enough to get a business off the ground, so when it does, it will be imperative to protect it from litigation, disputes, and accusations. With guidance from a lawyer familiar with business law, a business owner can feel confident that they have taken all precautions possible to protect their business. 

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