Alessandra Gesso provides skating lessons for children ages 8 through 15. Most students are beginners. Gesso rents ice time from the local arena. Because this is a new business venture, Gesso wants to save money and does not want to purchase insurance. She seeks your advice about her business exposure to liabilities.

Required

Write a memorandum to inform Gesso of specific contingent liabilities that could arise from the business. It will be necessary to define a contingent liability because she is a professional skater, not a businessperson. Propose a way for Gesso to limit her exposure to these possible liabilities.