I. Introduction
For an entrepreneur, starting a new business can be a fulfilling
venture. However, if the company and its assets are not properly
protected, the risks that come along with such an endeavor can prove to
be costly. This article will first discuss the agency issues that arise
in a litigious society. It will then explain the process for retaining
liability insurance. Finally, it will conclude by suggesting some
simple ways a new business owner can ensure he or she will receive
maximum liability protection.
II. Agency Issues
Agency law issues often arise when an employee takes action on
behalf of the company without the employer's consent or the proper
authority. [1] The Restatement of the Law (Third) Agency defines agency
as, "[t]he fiduciary relationship that arises when one person manifests
assents to another person that the agent shall act on the principal's
behalf and subject to the principal's … Read the rest