If you are faced with litigation or find you are in violation of a law, you should take steps immediately to address the situation. Depending on the violation, you may be faced with only a warning or a small fine and may be given a timeframe in which to make the appropriate corrections. An attorney can provide counsel regarding possible legal options for your situation.

In addition, there are a number of preventative measures you can take to limit the costs of defending a legal claim in the event that your business is sued. Here are a few actions to consider:

• Include a binding arbitration clause in all your contracts to help keep disputes out of the courtroom.
• Buy liability insurance that specifically covers employee lawsuits.
• Institute a severance program that awards a standard payout to employees who sign a release promising never to sue you.
• Include in contracts and agreements jurisdiction and venue provisions that are favorable to you.