The best way to handle a lawsuit is to avoid getting into one. Rare is the small business that has the funds set aside to pay for the lawyers (and possible judgment) of a lost case–heck, these companies often can’t afford to pay their owners a regular salary!
So how do you keep lawsuits off your back? Attorney and syndicated columnist Cliff Ennico has his top 5 tips, which include:
- Have a limited liability business entity.
- Get insurance and keep it updated.
- Disclaim legal liability in your contracts (but check with your attorney to make sure they’re worded properly).
- Transfer assets out of your own hands (mind the timing of this, though).
- Say “sayonara” to high risk customers.
Leave a Reply
