Risk Management in Situations of Litigation

Litigation is an unfortunately common occurrence in business. When planning your risk management strategy regarding your liability in business, it is also important to look at other potential risks that may arise when your company is involved in legal proceedings.

Crisis Management

Having a crisis management strategy in place will go a long way to avoiding many risks if your business in involved in litigation.  Media and public relation policies will provide guidelines for your staff in dealing with potentially volatile situations. Avoiding cases of defamation or damage to the company’s reputation can be avoided if public relations are effectively managed.

Legal Fees

The potential cost of litigation can be crippling for a business. If you purchase Business Liability Insurance your policy can cover the fees you incur during the legal process. This can include your legal teams fee and any compensation you may be required to pay.


With the popularity of electronic communication, greater legal importance has been put on e-mails in court cases. If called upon, a business must be in a position to produce records of electronic communication in a court case. This information must also be seen to be complete and in its original form.

Implementing an efficient eDiscovery system for your electronic communication archive will ensure your data is secure and can not be corrupted or tampered with. It is also important to consider the speed at which these files can be recovered. To delay a court case unnecessarily could run up costs or to fail to return with the correct documentation in time could be detrimental to the case.

Minimizing your potential risk when involved in litigation should be an important stage in your risk management strategy. Purchasing the right insurance and implementing guidelines could avoid potentially disastrous consequences.

If you need any business insurance advice, click here to ask an expert.

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