Top 5 Ways To Limit Liability

1) Watch What You Say and Do

  • Quality Practices [extremely important in Compliance Industries]
    • Are you following your QAP and Standard Operating Procedures?
    • Are you Self-Evaluating?
      • Annual Performance Audits
  • Thinking about Expanding?
    • Consider the difference between employees vs independent contractors

2) Hire a competent attorney

  • Attorney familiar with local laws and customs in the area in which the business operates
  • Expertise in a particular field
  • A tax attorney
    • If your company is anticipating legal challenges from the Internal Revenue Service (IRS) or taxation state department
    • If you’re an LLC
    • Corporation with partners

3) Separate yourself from your business

  • Sole Proprietorships are a quick and easy way to start a business, but…
    • It provides little protection for the company or its owner.
    • If this type of company is sued, the owner’s individual assets (such as their cars or home) are fairly easy to attack or attach in a court of law.

4) Protect your…Reputation, & Internet Security

  • Protect Your Reputation
    • Watch review sites like Yelp,  Angie’s List, etc. for bogus or negative reviews and respond promptly, legally, and professionally
    • Limit what you say on social media
    • Limit behavior that lends a negative perception or misperception
      • Drinking with your logowear
      • Political or social opinions that offend
  • Protect Your Internet Security
    • Don’t open copy [‘cc’] large lists in your emails
    • Don’t open emails with large ‘cc’ lists
    • Change your password and encrypt your documents
    • Use a good anti-virus that is updated frequently, without charge.
    • Purchase a good Maintenance Plan to prevent lazy practices
      • AppleCare for Mac
      • PC Matic, etc. for PC

5) Insure yourself & your company

  • Anyone can be sued at any time for any reason. You are not immune!
    • Various types of insurance coverage should be considered as well as using a competent contract attorney to build legal language into your contracts as a first line of defense.
  • Does your insurance cover 1M in legal representation regardless of ‘fault’?
  • Don’t assume an endorsement on your primary insurance is adequate.
    • i.e. Home Inspection policies with radon coverage, Radon Measurement & Mitigation on same policy.