5 ways to improve your liability clause

Unless your surname is Kardashian, you should always try to limit your exposure. It's impossible to eliminate risk when you're doing business but you can be smart about how to manage your exposure to legal risk under contract. Here are some ideas.

1. Don't start with an indemnity. Just because most contracts have one doesn't mean yours should have one too. If you're a vendor or service provider, delete the indemnity from your template supply agreement. A customer who wants you to provide an indemnity will ask for one.
2. Delete the indemnity for breach. When you indemnify someone, you agree to cover their losses in certain circumstances. Indemnities often cover things like breach of contract and negligence. But did you know that the other side can sue you for breach of contract even without an indemnity? Reduce your risk by reducing the number of scenarios under which the indemnity applies.