Before understanding how to prevent legal liability, the obvious first step is to understand where the danger is coming from.  Below is a conservative view of potential threats to your business in the employee context. Recognizing your weak points is an essential step in any important venture.  Your weak points may not be easily apparent.  You can take the common example of defending an air base that has multiple potential targets.  The airbase has its fuel depot, planes and a runway.  The cost of the planes and fuel depot may be extremely high but damage to a runway could cripple the entire airbase.   The runway is the weak point and this is where anti-air guns have been traditionally placed.

Analysis of your legal weak points will expose your runway.  You have four parties that you need to protect yourself from: (

1. Employees: your assets today, potential liabilities tomorrow
2. Principles: The trouble within
3. Customers and clients: treat them well
4. Government and other regulatory bodies