Your clients are your life source, but disputes may and do arise that leave you open to liability.  Risk management in this area is highly dependent on the area of business.  If you are in the service industry, negligence or acts below the standard of care are the most common source of litigation from your clientèle.  If you sell a type of product or good, breaches of contracts, warranties, or product liability are your weak points.

Preventative care in this aspect of legal liability protection is probably the most important since your risk of loss extends beyond just costs of a lawsuit.  Your reputation on how you deal with your customers and clients is very important, especially in a lawsuit.  For example, suing your customers or clients could easily backfire in public relations.  Lawsuits against you by your customers or clients could easily be magnified by a personal blog or a feature on Consumerist.com.