If you are dealing with other parties , make sure everything is on writing», you have to have best practices in every job you do . small Business will often strike deals with other business or work with consultants on specific project . Whatever deal you strike or whatever contract you are in make sure hire a lawyer and go over the contract , otherwise you ll loose in long run .Also recording everything in writing is best way to avoid litigations , make sure communicate with email, having the rights and responsibilities of each party in writing will also put you in stronger position if you are sued . critical other issue is customer Law suits , worst thing small business owner can do is ignore a customer problem or complaint. Follow up as soon as complaint arises and address the issue before it rises to level of law suit .

Taking a proper type of insurance is also very important and will protect your business in all aspects , Cause you will be sued but insurance company will defend you. It makes it easy you don’t have to give in to these Lawsuits