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Insurance Bureau of Canada/pe/Business/Risk Management/Protecting yourself from liabilities of others

Protecting Yourself from the Liabilities of Others

​Some people try to make a quick dollar through frivolous lawsuits. Understand your responsibilities and protect your business' bottom line .

​When you operate a business, you also take on liability risks. For instance, if you decide to hire a chef for an employee-recognition event, your business may be held liable if guests get food poisoning. Even though the guests are your employees, you could find yourself and your business named in a lawsuit. In these circumstances, you could decide to launch a legal proceeding against the chef and that chef's catering company. 


Alternatively, a guest who has been served excessive amounts of alcohol at your corporate special event and is then involved in a car collision on the way home from the event may attempt to hold your organization liable for damages. Learn more about liquor liability and tips for limiting alcohol consumption.

Fraud Artists

Retailers or any business with premises open to the public can be a target of "slip and fall artists." Slip and fall claims are a real exposure, but such "artists" find the smallest deficiency and use it to feign an accident and injury and then make a false or inflated claim for their own gain. Surveillance cameras can help deter or record a questionable slip and fall.

You May Be Sued:

Individual s who believe that an organization has harmed them or caused a personal loss may decide to sue. Consult a lawyer to draft or review a business contract (e.g., a waiver) and ensure that it is legally enforceable. 

Legal Liability

When using contracts or agreements, have a lawyer:

  • Explain your legal rights and obligations;
  • Ensure you have effectively transferred liability;
  • Determine if you have a properly worded legal document;
  • Witness the transaction.