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  • Writer's pictureTanya S Osensky

Using Contracts to Manage Business Risks

"Stacy" is a leadership coach facing a challenging situation. One of her clients, an employee of a company, revealed that he’s been recording the coaching sessions out of fear stemming from a past legal dispute with his employer.


Feeling caught in the middle, Stacy asked me for guidance. She did not want to be dragged into a lawsuit between her client and the employer.


We amended her contract to protect Stacy from being involved in such a lawsuit. The contract now has a robust provision limiting Stacy’s liability and a disclaimer of responsibility for the client’s actions. Additionally, we added a clause that shifts the financial burden of any potential lawsuit onto the client, so that Stacy will not have to pay for legal fees and costs in the event of a lawsuit.


Stacy is relieved that she can continue coaching with confidence, knowing that her interests are protected without fear of legal entanglements.


Contracts are there to proactively manage potential risks. Getting a great contract template is a fantastic way to do that, but it’s not a once-and-done deal. As the business evolves and new risks make themselves known, contracts should be amended accordingly. Consider consulting with me to make sure your contracts are clear and effective.


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