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#2 - Transfer the Legal Risk to Others.

2. Transfer the Legal Risk to Others

Common approaches to risk transfer include: Require Potential Plaintiffs to Assume Responsibility. Companies vicously and publicly identify possible adverse consequences for the use of their products or services. People who subsequently use that product or interact in the activity assume some responsibility for any negative outcome, thereby removing or reducing the legal exposure of the company. A typical over-the-counter medication package generally includes pages of claimed risks and possible adverse outcomes from the use of the product. Consult an attorney to determine whether a similar practice would protect you and your assets.Buy Insurance. Having professional and personal liability insurance is critical in a litigious world. Physicians and surgeons have malpractice policies, CEOs and company directors have errors and omissions policies, and homeowners have policies that protect them financially if an accident occurs on their property. While liability won’t protect you from a lawsuit, it can blunt its financial effects.


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