Example of standard of care
Consider a construction company that’s been contracted to build a residential home. The standard of care requires the company to use the proper materials, adhere to architectural plans, follow safety protocols, and complete the project within the agreed timeline. If the company deviates from these standards, it could be considered a breach of their standard of care.
Liabilities connected with standard of care
If a business breaches its standard of care, it opens itself to significant legal liabilities. Clients can file lawsuits claiming damages due to the business’s negligence.
For example, if a court finds the construction company mentioned above liable, it can be held responsible for compensating the affected party for repairs or even a complete rebuild. A client could also hold it accountable for any injuries or accidents resulting from negligence.
Factors to consider when determining the standard of care for your business
To maintain a successful business, it’s essential to meet or exceed your industry’s standards and ensure customer satisfaction. Ask yourself:
- Do you deliver services as promised?
- Do you complete tasks on time?
- Is your work accurate and reliable?
- Are customers and vendors treated with respect?
- Do industry peers respect you?
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