Launching an Oregon business involves many moving parts. You need to figure out your business’s leadership structure, for starters, and you also need to figure out what type of business structure to use. While these are both important steps involved in starting a business, it may also serve you well to devote some time to thinking about how to minimize the risk of your business facing a lawsuit.
According to Entrepreneur, many small, medium and large businesses wind up facing lawsuits at some point, and some of those lawsuits may lack merit. Even a frivolous lawsuit has the potential to dismantle your business and cost you considerable time and money, though. Yet, there are some things you might do to help mitigate risks. Doing the following may lessen the chances of a frivolous lawsuit arising and wreaking havoc on your business.
Understand your liability insurance needs
Strong liability protection helps protect your business’s assets. However, many business owners neglect to obtain the right kind of insurance coverage. Your insurance coverage needs might depend to some extent on the type of business structure you operate, but adopting the right liability insurance policy is key in protecting your company against lawsuits.
Separate your legal interests
If you operate more than one company, it may prove beneficial to give them different corporate structures. This helps ensure that if someone files a lawsuit against one entity, that party’s doing so does not potentially threaten the others you also operate.
Developing a strong asset protection plan helps you guard against frivolous lawsuits, but it also helps give you peace of mind, letting you devote more attention to your business’s day-to-day operations.