10 Ways To Bulletproof Your Company Against Legal Attacks

How can you dramatically reduce legal attacks while building a wall of defense around your company? Follow these ten simple steps and you will be on your way to protecting your company by building a fortress of defense.

Investigate and take action on all reports of harassment and discrimination. All managers and directors must report to the human resources director or other personnel any and all incidences or claims made by employees in connection with sexual harassment or any other type of harassment or discrimination. If managers do not report the incident or claim and an investigation does not occur, the company is at risk. Every employee should undergo annual anti-harassment and anti-discrimination training. The company's policy of prohibiting harassment and discrimination of any kind should be clear, in writing, and effectively communicated to every employee. Newly hired employees, as well as seasoned veterans, need this training. During any investigation, if new incidences are discovered, those incidences should also be thoroughly investigated. A report, which includes written statements of witnesses and the resolution of the claims, needs to be well documented and placed in the appropriate personnel file.

Make sure all agreements with vendors and suppliers are in writing and their insurance has not expired. The financial officer of each hotel or restaurant should undertake a careful review of all agreements. Be particularly mindful of indemnification clauses (in which one person agrees to protect another person from claims by third parties), waivers and releases, automatic renewals of the term of the agreement and assignment clauses that prohibit the hotel or restaurant from transferring the agreement to a new purchaser or new operator. Make sure all vendor and supplier agreements allow for the hotel or restaurant to cancel for any reason or no reason on thirty-(30) day's written notice. Obtain current certificates of insurance from every vendor and supplier and ask for updated certificates periodically. Make certain that the insurance certificate lists the hotel or restaurant operating or managing company, as well as the owner of the establishment, as additional insured parties on the policy.

Keep accurate maintenance logs on all equipment. Many cases have been settled or lost in court due to the failure of the property owner to maintain accurate maintenance logs on equipment owned or serviced by a hotel. This includes the monthly...