Many businesses run into severe legal problems, and it causes them to lose a lot of money to resolve the issues. Instead of waiting until a lawsuit happens, you can take proactive measures and safeguard your interests.
Many businesses don’t see the value of hiring a lawyer until they have gotten the summons to appear in court. The best time to hire a business lawyer in Utah is before someone sues you.
Once you’ve been served with the complaints and summons, it’s too late as the problem has already occurred. It then becomes a question of how much will it cost to resolve the issue. The expenses can include your attorney’s fees, court costs, settlements, and more.
Detach yourself from the business
Many people run their business as their sole proprietorship. The issue with this line ownership is that it puts your asset at risk. If you’re sued, your assets can be attached in a lawsuit.
One of the best ways to protect your assets is to have a trust owning the business. As a legal entity, a unit can own property and other types of assets. When a company owned by a trust is sued, only the assets in the trust itself can be attached to a court of law.
Incorporating a business lets you separate its finances from your own. That keeps your wealth safe if you lose you a business in a ruling. However, you should know that corporations operate under a different set of tax and business laws.
It’s imperative that you carry liability insurance. Such policies cover the legal costs and any settlements that are levied against you if you’re found liable. The cost of the insurance premiums pales in comparison to the amount of money you’d pay in compensation.
Some professionals, such as consultants and insurance agents, need error and omission coverage. Such insurance protects the business from customers or clients who accuse them of failing to live up to a contract or making a mistake.
In addition to insurance coverage, you can protect your business from liability by building protection into all your contracts. If you identify factors that can interfere with your ability to fill a deal, be sure to spell it out on the contract. You need to state that you’re not liable for incomplete works if those factors get in the way.
A competent lawyer will help you craft the necessary protective clauses with each contract you take. Such provisions are instrumental in shielding you from liability in a lawsuit.
It takes a considerable amount of effort and resources to grow a successful business enterprise from the ground up. Being on the wrong end of a legal suit can derail your goals and cost you a lot of money in the process. Instead of waiting until it’s too late, you should put measures in place to safeguard your interests. Hiring a lawyer, taking a liability insurance cover, and detaching yourself from the business saves you from running into crippling problems down the line.