“Tort claims” are all civil claims not based on contract law, This includes a wide variety of claims – including personal injury / accident claims, business claims such as unfair competition and libel and slander.
We will be discussing ways to avoid specific kinds of claims in the coming weeks, but here are some general tips that can help avoid all kinds of tort claims.
1. Follow Best Practices
Create best practices that include the standard of care for a reasonably prudent person in your industry. Make sure you are looking after safety the way you would be expected to as a person in your industry.
2. Have a Waiver or Release Agreement
Depending on the industry, having your customer sign a waiver can be very helpful. These types of agreements are more enforceable than most people think they are. Please keep in mind that a waiver or release agreement will not protect you from third party claims
3. Incorporating
Some businesses incorporate to try to limit liability. It is not as effective as some think. Incorporating will prevent you from being liable of the actions of your employees or the business in general. However, even though you are incorporated, you are still liable for your individual actions. If you own a delivery service and your driver hits someone, the corporation protects you. However, if you are the driver and hit someone, you are still be sued based upon your own negligence despite your company being a separate entity.
4. Insurance
Although insurance can protect you in a lot of ways, it does not protect you in all ways. A general liability policy covering the business will not protect you from defects of your work. In that situation, you may want to get a separate bond for that. Insurance will provide some protection against delivery drivers hitting people.
It is always a good idea to have your insurance coverage, agreements and business practices reviewed by an attorney to reduce liability before claims arise.
Sam Ventola has a wide variety of experience in business litigation and business mediation. When he is not helping business owners, he enjoys volunteering in his community and spending time with his family, especially his grandson, Jack.
Ventola Law serves the Denver Metro area including Arvada, Aurora, Boulder, Brighton, Commerce City, Castle Rock, Golden, Lakewood, Littleton and Arapahoe, Adams, Douglas and Jefferson Counties.