hether you are an established company or have just started out as a small firm, one thing that you need to be careful about is lawsuits. Litigation is dangerous for businesses because it can be risky for your reputation and cost huge money as well. You may have to spend a fortune fighting the case and paying compensation to the claimants. So it makes sense to be aware of everything that can get you in a fix and also have a strategy to prevent or deal with lawsuits if they still come. Here are the common business lawsuits that you must be vigilant about.
Breach of contract
As a corporate entity, you will have to deal with other organizations for one reason or the other. These business relationships are governed by contracts. Failing to carry out the contractual terms brings legal trouble. The situations could vary from failing to deliver goods on time, delivering incorrect or damaged products, breaching payment terms or timelines, revealing a trade secret, etc. The other party can sue you for breach of contract and claim damages.
Slip and fall accidents
Another lawsuit you should steer clear of is for slip and fall injuries, which come under the broader category of premises liability lawsuits. Evidently, you are responsible for the safety of any customer or legitimate visitor on your business premises. If someone happens to sustain serious injuries due to a slip and fall accident, they can file a claim for compensation. However, the accident should have happened due to your negligence, such as not putting up warning signs on wet floors, having clutter on-premises, insufficient lighting, or inadequate safety measures. Apart from slip and fall cases, customers can also sue you for product liability for dangerous and defective products.
Your company can face a major auto accident lawsuit if one of the employees causes a mishap while driving a business vehicle. According to experts at Thomas Law Offices, a major chunk of auto accident cases they work on relates to businesses in trucking and cab domains. However, other corporations are also prone to such claims because you may send your employees to run errands in business vehicles. While it is advisable to have well-trained people driving your vehicles, you must also have enough commercial auto insurance to stay covered.
Employee injury or sickness
Apart from litigation with other businesses, customers, and accident victims, your business is also at the risk of lawsuits by employees. When someone from your workforce gets injured or sick due to dangerous or unhealthy working conditions at the workplace, you can be held liable. They can file a workers’ compensation claim to cover the costs. Businesses should never skimp on workers’ security because the costs in fines and punishment can be massive depending on the state. In addition to workers’ compensation claims, you can also get into trouble with litigation for discrimination and harassment of employees.
Now that you are aware of the kind of lawsuits that you may encounter, you must have all the preventive measures in place to avoid them in the first place. A good business attorney on board and proper insurance have you covered if you still face litigation.