Assess what general areas of liability exist in your business
Some general categories include lawsuits from vendors, suppliers, customers, lenders, employees, and competitors.
Under each general area identify specific liabilities
Examples of specific areas of liability under the general categories above include employee discriminations, default and foreclosure on notes and loans, replevin of leased equipment or equipment subject to a security interest, premises liability, professional negligence, and product liability.
Evaluate the steps required to reduce the general and specific areas of liability
Examples of liability reduction measures include your choice of business entity, avoiding signing personal guarantees, insurance (business, auto, property, liability, key life, and employee types of insurance such as work comp and unemployment).
Consult with professionals to audit, fine-tune and customize your assessment
Every business owner should have a business lawyer, banker, accountant and insurance professional to consult with to assess and protect against business-related liabilities. Also, your local chamber of commerce, college or tech school may have programs for business development and review that can assist you in protecting your business in a cost-effective manner.
Additional resources provided by the author
Tip: conduct an Internet search for additional articles and information on this subject.
Credit is given to Attorney John C. Wenning for his contributions to this guide. Review the guides below for additional tips and information.