Companies have been warned to protect themselves against costly litigation cases, which may interest those with business insurance.
Law firm DWF recommended that business insurance holders establish an awareness of common issues, take care with terms and conditions and increase training to lower the chance of legal problems occurring.
Graham Dagnall, litigation partner at the firm, commented: "When an economy is in a downturn an inevitable consequence is an increase in disputes, which cost both time and money."
He also claimed that establishing a clear strategy to prevent lawsuits arising in the first place can be beneficial for business insurance customers.
Mr Dagnall suggested that simple steps to follow include protecting confidential data, confirming verbal orders with notes or email, having clear payment terms and clarifying issues such as the right to claim statutory interest with customers.
Last month, the Forum of Private Businesses claimed that small firms spend an average of 37 hours a month each complying with legal burdens and red tape.
