Today’s contractors are under siege. Multiple issues threaten to reduce profitability: high materials costs, terminated or delayed projects and less financing. Sometimes, owners with dwindling funds simply fail to pay as agreed. When the economy is at a low, contractors cannot easily look the other way or take pennies on the dollar when they are not fully compensated for their work. Contractors are facing liabilities in the course of contract litigation that pose bigger risks than ever before. And, because litigation can prove devastating for all but those with the deepest of pockets, contractors need to prepare for battle to ensure the most favorable outcome.

When it comes to risk management, small businesses and individuals with limited resources are at a disadvantage—a challenge exacerbated by today’s economic uncertainty. Yet, with the right steps, they can put themselves in a strong position to manage potential adversity.

In today’s economy, there can be significant unforeseen expenses such as firing an employee, you have to close a store or worse. As a result, small businesses and entrepreneurs need to effectively hedge their risk.

As anyone who has ever been involved in litigation knows, the risk of having to pay for your adversary's attorney's fees is a significant worry.