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Is your business ready for a lawsuit?

On Behalf of | Apr 13, 2021 | Blog |

The typical Minnesota business owner tends not to be highly focused on the possibility of one day facing a lawsuit. The reality is that a business owner needs to pay attention to the prospect of a lawsuit and develop a proactive strategy in regard to potential business litigation.

Most common types of business litigation

Minnesota companies could face two broad categories of business litigation. A business is most apt to face a lawsuit brought by an employee or a customer. Another type of business litigation that is less commonplace is one brought by a unit of government arising from some type of regulatory violation.

Business litigation preparation essentials

Two fundamental steps must be taken by a business in order to be prepared to take on a lawsuit at some point in time. First, a business needs to be properly organized in its structure. Proper business organization provides the owners a shield against personal liability in a lawsuit brought against the enterprise. The most common types of business organization structures used in Minnesota are a limited liability company or a corporation.

Second, a business needs to make certain that it maintains appropriate liability insurance. Liability insurance designed to protect a business should it face a lawsuit cannot be an afterthought; it must be a primary area of concern because it is a first line of defense in the event of someone suing the company.

A Minnesota business is wise to develop a relationship with an experienced attorney versed in business litigation. An attorney may aid in business in establishing a framework designed to protect the enterprise from a lawsuit in the first place.