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You develop world-class products so prepare for a lawsuit

On Behalf of | Mar 15, 2021 | Business Litigation

When you opened your business in the north county of San Diego, you had one great product to sell and it really took off. 

Since then, the number of world-class products you develop has grown along with the potential for lawsuits. How should you prepare? 

Understanding your personal liability

If you have been in business for a relatively short time, you have no doubt concentrated on day-to-day operations and the task of expanding your sales. As you become better known for your great products, the potential for lawsuits increases. Whether initiated by a competitor, a supplier, a customer or an employee, a lawsuit could put the future of your company and your personal income at risk. 

Protecting your business with insurance

Various types of insurance can provide you and your business with much-needed protection. Examples include Employment Practices Liability Insurance, Directors and Officers Insurance, Environmental Insurance and Commercial General Liability Insurance. 

Implementing a litigation hold

In the event a lawsuit does arise, you must immediately seek legal guidance and prepare your defense strategy. Next, you must institute a litigation hold. This means securing any information in either electronic or hardcopy format that might pertain to the lawsuit. The court can impose penalties if you allow the deletion or destruction of any such information. 

Developing professional relationships

In the business world, the general belief is that a business owner can expect to face at least one lawsuit during his or her career. Being proactive should include forming relationships with professionals. In addition to an attorney, you may need the help of an accountant, a financial adviser and an advocate with knowledge of your exceptional product line. You will find that managing the expense and angst associated with a legal battle is made easier with smart, effective preparation.