Operating a business is a significant responsibility. However, if someone files an unanticipated lawsuit against your company, it could put you at risk. For this reason, as a business owner, it’s important to take the necessary steps to protect your bottom line.
Common liability risks
There are many common circumstances that have the potential to lead to a lawsuit.
For example, you may decide to hire caterers for a business function, which resulted in your guests ending up with food poisoning. Although the catering company caused the illness, the guests can seek to hold the company that hosted the function financially responsible as well. Civil lawsuits may follow, even if the victims of food poisoning are staff members of the host. However, the company may, in turn, launch a legal claim against the caterer or the chef who was in charge of food preparation for the function.
Another example is liability surrounding alcohol service. For instance, you may host a holiday party for your employees to thank them for their hard work during the year. If you choose to serve alcohol at the party – without enforcing a drink limit – you could be held responsible for overserving if one of your guests becomes intoxicated at the event and is involved in a collision on the way home.
These are just a couple examples that underscore the importance of seeking preventative legal protections. Business owners can benefit from taking the following precautions:
- Seeking legal counsel when drafting contracts and agreements
- Ensuring that business contracts contain legally enforceable waivers
- Getting clarity with regard to their obligations and legal rights
By anticipating potential liability claims and taking action to prevent them, business owners can protect their bottom lines.