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Taking the Right Steps to Protect against Employees' Mistakes and Misdeeds

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Appliance repair, carpet cleaning, and plumbing all have one thing in common: They can face expensive legal liability if a mistake is made or a mishap results in damage to the customer's home. Such liability is even worse if an injury is involved. Fortunately, there are ways to protect yourself and your company from such things. Be sure to implement them to keep your risks in check.


Get That Insurance

While many municipalities require service providers to have insurance, we all know that requirements aren't always met. Be sure that you're not one of the ones who decides to fly without the proper coverage. With it, you're not just protected from citations - you're protected from the costs that result from human error.


Use Proper Contracts When Accepting Work

While "we can assume no responsibility" clauses may not hold up in court, there are plenty of liability limitations that will. Make sure to include them in your contracts so that you don't leave yourself open to undue liability. Some of the specific clauses you need will depend on your line of business, so it's a good idea to discuss this with an attorney. Your attorney can also suggest other things that need to go into a good contract.


Vet Your Employees

If there are any certifications typically needed for your company's line of work, make sure your technicians have them. This, however, is just the start. Certifications show that the person has passed the exams needed to get them, but they don't say anything about work ethic, important background aspects outside of the professional sphere, and other things of this nature. Attorney Jake Posey noted, during hiring interviews, be attentive to anything that hints that the person might not be someone you want to send out to people's homes. Of course, you should also run a criminal background check on people who will visit customers - if not on all of your workers.

Category: Business Formation

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