A public information resource sponsored by the Law Office of David W. Martin - (800) 229-0546


Nearly every business is exposed to the risk of potential harm to its customers or third-parties – often times these risks are largely unrelated to the fundamental business, such as liability for negligently caused injury on the business premises or involving company vehicles.

Implementing safety standards and hiring and employee monitoring protocols is a good way to minimize these risks, but are not substitutes for liability insurance.

Employers are responsible for the acts of their employees and other agents acting within the scope of their work duties under the doctrine of “respondeat superior” and will be held legally and financially responsible for any harm negligently caused to third parties. Employers can be held vicariously liable for the negligence of employees and other agents, but often will not be responsible for the conduct of independent contractors.

Risks and legal exposure can be decreased significantly through preventative measures such as safety inspections, employee screening, and other such precautions. Such policies should also help reduce insurance premiums.

While it is possible to reduce the risks, it is impossible to eliminate the possibility of an accident – so proper insurance coverage is a critical component of prudent business planning.