Everything that we do in business involves some amount of risk. Some risks are relatively minor. You could lose or break an inexpensive item; you could put a minor dent in the bumper of your car by hitting the trash can in your own garage; you could trip and fall in the driveway and skin a knee. In these minor accidents, you have no one to blame but yourself, and you are willing to sign them off as ordinary events of life. Now consider the following risks. You could lose or break an expensive musical instrument entrusted to you for repairing; you could have an accident with your car while driving someone to the airport as part of your car service business; the FedEx delivery person could trip and fall in your driveway and break a leg. In each of these incidents, you and your small business, no matter how undersized, are liable to be sued for damages, sometimes for huge amounts of money. You also face the risk of loss due to theft of your equipment and supplies. In that case, you can say that actually your business could be damaged by fire, flood, loss of heating, and other unforeseen events in every single time.
In the other side, the term of liability does not stop with obvious things like accidents. If you are operating a business, you face liability for injuries and losses caused by your services and products and for errors and omissions or negligence in advisory and consultative services.
