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What are the key steps that a business owner in Texas should take to safeguard their business from lawsuits?

Picture of Chris Battis By   ·  1 minute read

As a lawyer, I would advise a business owner in Texas to take the following steps to safeguard their business from lawsuits:

  1. Incorporate or form a limited liability company (LLC): The first step to protecting your personal assets is to incorporate your business or form an LLC. This will allow you to separate your personal assets from your business assets, which can help protect you from personal liability.
  2. Get proper insurance coverage: It is critical to have the appropriate insurance coverage. General liability insurance is one of the most important types of insurance for any business as it will protect the business if it is sued for bodily injury, property damage, or personal injury.
  3. Implement strong employment policies: Employers should implement clear employment policies detailing what is considered acceptable behavior for employees. Employers should also ensure they are complying with all applicable employment laws and regulations, including anti-discrimination laws, wage and hour laws, and workplace safety regulations.
  4. Keep accurate records: Maintaining accurate business and financial records is essential for protecting a business from lawsuits. Adequate record keeping can help demonstrate that the business is following all relevant laws and regulations.
  5. Draft and sign contracts carefully: Businesses should always put agreements in writing and ensure that contracts are well-drafted, clear and unambiguous. A well-drafted contract can help avoid misunderstandings and disputes.
  6. Seek legal counsel: It is important to consult with a qualified attorney to discuss the specific needs and risks of the business. A lawyer can advise on legal issues, draft contracts, and identify potential liabilities and risks.

It is important to note that these steps are not foolproof and may not protect against every type of lawsuit. Furthermore, there may be exceptions, limitations, or further actions necessary depending on the nature and size of the business. Therefore, businesses should always consult with a qualified attorney for specific advice tailored to their situation.