Hundreds of thousands of lawsuits are filed each year in America’s courts, a good portion of them against businesses. Reducing your risk of suit is a good way to avoid being hauled into court for a costly and time consuming legal battle. According to the U.S. Chamber of Commerce, small businesses paid out $105 billion in legal fees and court judgements in 2008. Of that figure, nearly $35 billion was paid out of pocket by businesses rather than being covered by insurance.

Personal injury suits make up a substantial portion of all lawsuits filed against individuals and businesses. Reducing the number of safety hazards to customers and employees at your business can help protect you from suits. Take the time to do a safety inventory of your business. Make sure you’re compliant with all state and federal safety laws, and also take the time to make some common sense changes to reduce the risk of injury to your customers and employees. A little bit of precaution can go a long way to heading off potential personal injury suits.

If you don’t have a good insurance policy for your business, get one. Insurance can provide indeminty for damages awarded as the result of a civil suit, and insurers will cover the cost of defending you in court. This is important, as businesses can triumph in court only to be crucified with attorney’s fees if they have to pay them on their own. Get a policy that covers all the potential risks at your business and provides adequate coverage amounts to provide coverage for a reasonable court award.

Employee suits are another frequent cause of lawsuits against businesses. You can head off these suits by practicing fair employment practices and complying with the law regarding employment. It’s also important to train your managers and employees about proper workplace behavior and discourage sexual harassment, bullying and other behaviors that could give rise to a claim.

Lawsuits may be headed off with a simple apology or settlement offer to the aggrieved party. Many suits go forward only because the plaintiffs feel they have no other recourse. By being open and responsive to your customers, suppliers, vendors and employees, you may be able to avoid creating the anger that often leads to lawsuits. While official apologies and settlement offers should only be made with the assistance of an attorney, you can listen to your customers, vendors and employees and show empathy for their concerns.

By being proactive, and taking necesary steps, you can protect your business from legal action.