First of all, your Dad should have general liability insurance, and perhaps, special coverage for potential medical claims. And the first thing he should do in the event of an incident is to automatically tender the claim to the insurance carrier.

Second, the insurance company may require you to have a lawyer-prepared rental agreement as a condition of coverage because good contracts can drastically reduce legal claims and costs.

Third, whether the insurance company requires this or not, it is a very good idea to have a good contract. While it is more difficult to disclaim liability for bodily injury than economic damages, the agreement can be drafted to make clear that it is only a product that is being provided not advice, particularly not medical advice, regarding the choice of that product. And damages can be limited and some claims prevented or made much more difficult by contract. And, drafting or reviewing and revising contracts is not expensive - MUCH. MUCH less than just the initial fee of a lawsuit.

(By the way, having insurance "gives you the right to sue your insurance company." By the time it shows up your Dad could have a default judgment against him, so your Dad will need to have his own legal counsel initially. Naturally, having the firm which wrote the contract on board relieves stress and saves time and money.)

So, overall the business risk can be reduced by having your contracts in order, as well as what I call your "legal brick house." In a few days we will be posting on the firm website my article on "Ten Common Mistakes that Business Owners Make." You may want to review that and talk to us about those items. This firm does business law for business ownwers.

Hope this helps.

Another "by the way," there is no such thing as a form agreement except to a non-lawyer. Don't save $50.00 bucks to pay $50,000 or more later. Really.)

Thanks for the inquiry.

Law Offices of Donald W. Hudspeth, P.C.

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Phoenix, Arizona 85012

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