First off, your in Canada, so what I say here may or may not be applicable to you. You should always have a business form that can take the form of a legal entity (corporation, llc, llp, etc...) You always want to shield personal assets from the business. Protection of the veil is not automatic as you need to follow certain formalities.

Liability insurance is always good to have as well. One of the keys to getting the protection of a corporate veil is to be sure your company is adaquately capitalized. Insurance helps with this requirement. It is not a slam dunk as to whether the insurance will cover a claim. If you simply breach the K, insurance is not going to help.

Of course, according to your post, you have already signed an agreement, so much of this may be moot. The time to consider these things is "before" you sign an agreement.

People in this thread of mentioned disclaimers. They are nice and they do have some shock value, but in the end, they don't help that much. Basically, you can't disclaim liability for bad faith dealing, negligence and willful breach of a contract. If there is a legitimate issue and you cannot afford to litigate, insurance can help.

If you want to be safe, keep to the terms of the K. If you cannot, bail out as early as possible so as to avoid your client incurring damages for which he can seek a remedy against you.

Again, your in Canada and I don't have a clue as to what other constraints you may be under...


>Hi,
>
>Do you know the best solution to protect yourself against potential lawsuit, i just sign a contract with a medical office and i want to be safe.
>
>1-Insurance
>2-Incorporation
>
>
>Thanks