In today's world, defending against lawsuits may be a routine cost of doing business. People today are quite litigious and many readily sue businesses for a number of reasons. Even if a lawsuit that is filed against a business ultimately fails, the business will still have incurred expenses and spent time defending against allegations, and these expenses can be difficult to handle for a small business. There are preventative measures businesses may be able to take in order to lessen the chance that a lawsuit will be filed against them.
First, all agreements should be in writing. When a written contract exists, the details are easier to enforce. In addition, in some states, some agreements are not enforceable if they are not made in writing. In addition, written agreements should include clauses that specifically outline how any disputes that may arise will be handled. Having a written agreement that a dispute may be resolved through arbitration or mediation prior to any litigation may help prevent expenses associated with court intervention.