The last weak point of evaluating potential liability is exposure to the government and other regulatory bodies. General compliance with the laws is an obvious step in risk management.  This can cover everything from proper business tax filings, proper registration of your business corporation and DBA, and acquiring the appropriate business license.

Licensed or regulated industries are at high risk of government liability.  As a

Does your business retain personal information on your customers in California?  In general, if you have a security breach in your system, you may have to notify all of those customers of the breach.

It seems routine that you receive a letter from your financial institution advising them that personal data in a third party’s possession has been compromised and that they need to take steps to protect themselves from identity