In many ways your business is your baby. As a business owner, much like a parent, your main focus is on your business' success and overall well-being. You do whatever is in your power to help your business grow and become profitable. A business owner can also spend an equally large amount of time developing strategies to keep a competitive edge against rivals. However, sometimes a business owner spends so much time trying to protect his or her business from outside competitors that he or she forgets about the perils that lie within the company's own doors. Even the strongest and most well-established of companies can be hurt by employees who leave the employer for a competitor or to start his or her own business. One way to protect from such employee actions may be with a covenant not to compete or "non-compete agreement." If you are unfamiliar with this potentially valuable tool, the following information should answer some frequently asked questions.
Business owners are often attentive of the importance that contracts play in the business world and are quick to seek counsel if a contract is breached. However, a sizeable segment of business-related litigation stems from what are referred to as "business torts." A "tort" is a class of civil intentional or negligent wrongs. Business torts do not include damage to property or persons, but rather target a business' intangible assets. A business that has suffered economic loss as the result of a business tort can file suit against the offending business or individual. A savvy business owner can safeguard his or her business' bottom line simply by being aware of the existence of these causes of action. Three of the most common business torts that can jeopardize a business and its economic interests are: