Henry E. Vail II is a wealth advisor at Sucre-Vail Wealth Advisors. Based in Houston, Texas, Henry Vail II offers his clients in the medical field financial services including wealth management, private banking, and liability audits.
The business environment is prone to catalytic changes, from changes in the governing legislation to technological disruptions. These changes expose businesses to liability lawsuits. Liability audits are essential to determining the extent of this risk.
These audits are conducted by insurance companies or financial agencies on the profit statements of policyholders to determine whether they express an accurate picture of the business’ exposure to lawsuits. While these audits do not reveal details about a company’s valuation, they establish the extent to which the company is protected from claims and if more coverage is necessary.
In conducting a liability audit, an auditor evaluates the company’s payroll, specifically federal payroll tax returns, and income statements. Afterwards, the auditor looks at the overall employee expenses and the classification of employees to allocate liability exposure with job duties. This reveals the jobs categories carrying the most liability risk.
The major benefit of this audit is that it notifies business owners of their exposure to lawsuits and the adequate steps to take in order to cover themselves adequately.