Loss Prevention: Safeguards Against Liability

Abstract

Emerging technologies, uncertain legal doctrines, the trend toward increasing litigation, and the lack of insurance have forced many companies to assess risks more carefully and to reemphasize loss prevention programs. “Loss prevention” means actions taken to limit liability exposure through quality assurance and quality control (QA/QC), employee training, legal consultation, and contract screening and review. CH2M HILL is a large consulting engineering firm, which is often the proverbial “deep pocket” in litigation when a project goes sour, a contractor has financial problems, a third party is injured, or a client is dissatisfied. This paper begins by describing two CH2M HILL training efforts in the area of loss prevention: a risk management seminar on project screening, contract review, negotiation, and QA/QC; and a risk management seminar on projects involving hazardous and toxic substances. The writer then describes the internal refocusing that is necessary to ensure that loss prevention becomes corporate policy. The result must be a firm's renewed commitment to providing quality services and to fairly apportioning risks in its contracts.