The Four Keys to Protecting Yourself
As a cleaning and restoration expert, you will be called upon to deal with catastrophic damage or loss scenarios that need resolution under time and cost constraints. Some might think that these situations are the only ones that will give rise to legal claims. Yet, even the simplest jobs can lead to lawsuits. No matter how well you do your job, you will likely face a lawsuit at some point in your career. The good news: You can protect yourself with these four keys to reducing liability.
Know the Law
Far too often, restoration experts assume that if there are no federal regulations that dictate the protocol for a situation, the company has discretion to act as it sees fit. This assumption should never be made, as states and municipalities sometimes have regulations of their own. Most regulations are readily available online; however, knowing how courts and regulatory bodies have interpreted these regulations, they may not be as easily discernable. It is best to contact an attorney to determine what regulations are applicable and whether you need to know anything beyond the black and white text. The old phrase “things aren’t always what they seem” very much applies to regulations.
Know the Standard of Care
Once you understand the laws and regulations that apply to your work, you still must know the “standard of care” by which a judge and jury will assess your performance should you be sued. When defending a negligence claim, your actions will be compared to those of your peers.
In some instances, the standard of care is laid out for you – for example, in the deleading industry where procedures are often spelled out in detail. But what do you do if the standard is less clear? Follow these guidelines:
When in doubt, ask your peers how they would proceed in a given situation to determine whether you are acting “outside the lines.”
Read industry publications that provide good, practical advice on best practices and advance warning of changes in industry standards.
Acquire industry certifications such as Certified Restorer, Water Loss Specialist or Certified Mold Professional. These can provide a marketing advantage as well as an education in the latest industry standards.
Follow your gut. If you are asked to do something that does not feel quite right, it probably isn’t. Do not rush your decisions, no matter how much pressure your client or an insurance company tries to apply.
Know the Scope of the Contract
In breach of contract lawsuits, a contract with imprecise language is the most commonly seen avoidable mistake. It is a delicate balance to draft language that is specific enough, yet not too specific (as even that can lead to legal issues). Vague or over-specific language in a contract can lead to a claim by a customer for acting outside the scope of the contract. Ensure that the scope of work defined in a contract is properly worded to avoid legal headaches. Check with your attorney if the situation does not “fit” with your usual work, as what is good for one job may not be good for another.
Know Your Insurance Policy
The wording of your insurance policy could be the difference between the cost of a lawsuit being covered and your company taking a serious hit to its bottom line for legal fees and settlement costs. Know the exclusions in your policies and what they really mean, the gaps in coverage that your policies could create and the full scope of coverage for different situations that may arise. Insurance policies are complex – know when to ask for help! Work with a knowledgeable insurance professional and stay within your area of expertise.
Your Keys to Self-Protection
Knowing the law, the standard of care in your industry, the scope of your contract and the full breadth of your insurance policy can not only help you avoid legal headaches, but also increase your attorney’s chances of nipping lawsuits in the bud as they arise.
One final key: Pay attention to how your employees treat your customers. As in most service industries, customers who feel that you are caring, considerate and competent are much less likely to file a lawsuit. Focus on these steps to reduce the chance of a claim, as it is much easier to stay out of trouble, than it is to get out of trouble.
Governo Law Firm is an 18-attorney, Boston-based firm representing individuals, manufacturers, consultants and companies of all sizes in local and national litigation, as well as counseling in business planning, including risk management and regulatory compliance. David Governo can be reached at dgoverno@governo.com and John Gardella can be reached at jgardella@governo.com.
Information contained in this article is not intended to be, and should not be interpreted as, legal advice. Each legal situation is different and you should consult with an attorney licensed to practice in your state about specific legal issues.