Liability – Each week I identify a different theme of the week and provide you with content, some original and some from external sources, around that theme.
On episode #34 of the Business is ART podcast on the TrueChat Network we talked about liability and some of the things businesses can do to protect themselves from liability – before an incident occurs. In this post, we explore the subject a little further.
A Word on This Week’s Theme
Search around the internet for information on liability and most of what you find is provided on insurance company websites and blogs. The primary online sources I go to for information on a variety of business related topics are virtually dry when it comes to the topic.
Many online magazines have lots of information and takes on risk-taking, but in most cases, they are talking about taking business risks unrelated to liability – like, “Go ahead and launch that new product” type of risks. Very few that I found talk about the risk of liability (beyond data and security).
On #34 of the podcast, my guest was Scott Taylor who indeed works for an insurance company, but Scott offered several points with regard to liability protection (as opposed to insurance coverage), that are worth heading.
Among them are:
- Have a safety plan
- Keep buildings and facilities up-to-date in terms of maintenance
- Train your employees (regularly/continuously)
Doing things like this will not only protect you against liability, but may reduce your liability insurance premium.
In terms of risk in the broader sense, make sure you have a risk management plan. A risk management plan needn’t be complicated. Envision a table in an Excel spreadsheet. Your plan can include as few as 4 columns:
- The risk
- The impact if the risk occurs (high, medium or low)
- The likelihood the risk will occur (high, medium or low)
- The strategy to mitigate against the risk from occurring or minimizing the impact if it does
I relied on some non-traditional sources for links to information around liability this week, but even if the source ultimately would like to sell something to you, the content is good information.
This Week’s Links
Linkis – Many are not aware that profit and non-profit businesses alike should consider liability insurance to cover any directors to the board, be it paid or unpaid. Anyone considering a board position should think about that before accepting. But when should businesses start thinking about it? Here is some insight.
Smart Business – Are you at risk for employee related claims? If you said “No”, you may be in denial about your liability risk. Find out more from this article at Smart Business.
Taylor Thomason Insurance – There are over 100 million lawsuits filed in the U.S each year. What are the latest trends in lawsuits affecting business? From employee and copyright infringement to customers and vendors, here is some of what’s going on.
Live Insurance News – Live insurance reports that cyber insurance premiums are declining as businesses become more and more savvy in protecting against data loss and breaches. But don’t let that lure you in to a false sense of security. You still need protection, especially if you store client data.
Business.com – You and your leadership team should be involved in liability prevention. Business.com explains why and how in a way that might go beyond the obvious.
Entrepreneur – Here, Entrepreneur offers some tips on protecting your business against risk. Follow these tips and use the risk management plan description I provided to start your own plan for managing risks.
Spark – Even non-profits have risk and liability. This post does a good job making the case for director and officer liability coverage for non profits.