The best way a business can avoid lawsuits is to be proactive and stay on top of things. As a business, you should make sure to get everything in writing, so there’s no confusion later. Some ways you could achieve this is through contracts, agreements, and policies. Secondly, a business should follow rules, such as industry regulations, employment laws, or tax requirements. This may require dedicating resources or assigning responsibilities to compliance departments. While it may be tempting to cut corners, it is a really easy way to land yourself in legal trouble. 

As a business, you should treat everyone fairly, and get insured. In unforeseen circumstances, business liability insurance can help cover legal costs.

Lastly, have a lawyer you trust. A lawyer can review contracts, give legal advice, and step in before small issues turn into something bigger. Prevention is cheaper than fighting a lawsuit!