Shielding Success: Mastering Business Risk Reduction and Liability Defenses

The Expert Podcast

Introduction

• Importance of liability protection for business owners and managers.
• Overview of defenses against liability claims.
• Clarification: I am not providing legal or insurance claim advice, just general information.

Understanding Liability and Negligence

• Liability claims can arise from errors, omissions, or negligence.
• Key defenses against negligence claims:
  • Last Clear Chance: The plaintiff's responsibility to avoid the loss. If they fail to act or cause damage, it can be a defense. Applicability varies by state.
  • Contributory Negligence: In jurisdictions recognizing this defense, if the plaintiff contributed to their loss, they may not be awarded damages.
  • Comparative Negligence: Weighs the negligence of all parties. Damages may be reduced by the plaintiff's contribution to their own loss.

Specific Defenses and Legal Theories

• Assumption of Risk: The plaintiff's understanding and acceptance of risk in activities like skiing or skydiving can be a defense.
• Strict Liability: This applies when a business is engaged in inherently hazardous activities or produces defective products, leading to liability without proof of negligence.
• Imputed or Vicarious Liability: holding a party responsible for another's actions, such as an employer for an employee's actions.

Practical Considerations for Businesses

• Recognize and evaluate potential hazards and risks.
• Ensure general liability and errors and omissions (E&O) policies cover these risks.
• Work with insurance agents or brokers to tailor coverage to your business needs.

Conclusion

• Importance of understanding various defenses and ensuring appropriate coverage.
• Encourage proactive risk management and consultation with professionals to safeguard your business.

If you have questions or want to delve deeper into today's topics, visit at RiskCoverage.com for additional resources. Until next time, stay insured and stay informed!