The business owner must first understand that he or she cannot entirely avoid liability issues. Given that, the owner must then decide how to handle liability exposure for the business. There are some basic steps.

First, the owner must understand where the business has the most exposure. This may be in terms of issues where there is the greatest monetary risk. It may also be where employees, visitors, customers, or anyone who comes in contact with the company and its products and/or services are exposed to the greatest chance of risk.

Next, the business owner must consider the level of exposure that he or she is willing to cover or has the resources to cover.

With this information, the owner must plan for liability exposure coverage. This will occur first by taking actions such as operating a safe plant, taking precautions, and developing safety procedures. Then the owner must go into the market and get bids for the level of protection needed. He or she must take into account the amount of risk that the person is willing to cover: in insurance terms, the deductible and co-insurance.