Unexpected litigation is one of the biggest disasters that can befall any business. If a former employee, client, or a third party takes legal action against you, this could have huge consequences for your company for many years to come. It could cost you an enormous amount of legal fees, completely disrupt your business operations, and severely damage your reputation. Even if you are not at fault.

There are so many reasons why someone might want to litigate against you. Perhaps you have been accused of breaching the terms of a contract, or your company was indirectly responsible for causing an injury or accident. Whatever the reasons, the future of your organization is at stake.

But by putting protective measures in place, you can significantly reduce the risk of legal action and safeguard your company against any accusations, whether wrongful or not. To help you prevent such consequences, here are five tips to avoid litigation.

Create risk assessments

Most people in business have had to either read or write multiple risk assessments over the years. They can be incredibly boring and often seem like overkill. But they are actually hugely important and are far more than just a box-ticking exercise. A risk assessment not only makes you aware of all the potential risks out there but it requires you to have steps in place to avoid them. It should outline the ways in which your organization is acting to minimize disasters caused by things like injury, cyber attack, or technological malfunction. You will have a better understanding of the likely dangers and pitfalls, as well as equipping you with an action plan to deal with any calamity.

Keep records

A common cause for legal action in business is when a contract is seen to have been breached. Keeping everything in writing and maintaining records of all documents and meetings is essential for covering your back if a disgruntled employee or client decides to sue. 

Hire a solicitor/attorney

Whether you have an in-house lawyer or you use a third party outfit, such as Global Legal Law Firm, you need access to legal professionals to help you stay above board and protect yourself. Make sure they specialize in essential areas such as contract law, electronic payments law, and other complex litigation.

Train your staff

Every one of your employees is operating on behalf of your company, so any negligence or malpractice by your staff could end up damaging your business. To avoid this, ensure your staff are properly trained in best practice. They should know how to handle sensitive data and be briefed on the terms of contracts and risk assessments. 

Take out insurance

Even with these preventative measures in place, there is always going to be a risk that someone might take legal action against you. And in such a scenario, it is critical that you have an insurance policy that covers you. This will help you to recoup your losses and minimize any potential disruption the litigation may have created.