When establishing a business, personal injury lawsuits are one of the most costly and expected expenses. Consumers might sue you for personal harm after visiting your company. Accidents can occur at any time of the day. Pick out the right insurance package to protect yourself against potential lawsuits, especially because liability issues can become significant threats to small businesses. They can affect businesses, industries, and companies in various ways. Take note of these standard liability issues to prepare your firm.
General Liability
Issues concerning general liability mainly involve third-party injuries, property damage, or any other losses that took place inside your business property. For example, a customer accidentally slipped without noticing that the floor was wet and injured while walking inside your business. There is a possibility that the injured customer will most likely hold your company liable for their medical expenses. Also, the customer injured has the right to sue for damages to your company, so you’ll want to be prepared to face a liability lawsuit.
Below are common claims for general liability in small businesses:
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Damage to Property
Suppose someone has damaged or destroyed your property (house, vehicle, land, smartphone), whether they did it negligently or maliciously. In that case, you can ask for help from the court system to compensate for your financial loss by filing a lawsuit against the individual. Your general liability insurance will come into play if you inadvertently damage someone else’s property if it’s the other way around. Having an insurance policy is crucial since it will assist pay the expenses of a lawsuit.
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Falls and Slips
Even if it wasn’t your fault, if a person accidentally slips and falls on your land or while inside your company, they or their family members might sue you for medical expenses. Fortunately, your general liability insurance can help cover the costs if you have one.
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Product Liability
Product liability means holding the manufacturer liable when a customer claims a newly bought but defective product. Anyone involved in the chain of distribution will be held responsible for any injury or accident caused by the product’s issue, if there are any. The law requires a product to fulfill the needs of a consumer. However, your general liability policy will cover the costs of any concealed defects in the goods that you sell.
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Injuries to Customers
As soon as a customer enters your shop, they should feel protected and secure. All of your guests are entitled to a safe environment and atmosphere. If your firm fails to meet this requirement and consumers get injured, they have the right to sue you. General liability insurance can help you pay for the charges.
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False Advertising
Several laws prohibit deceptive advertising, discriminatory labeling, and other similar activities. Your customers have the right to sue you if you mislead them into paying for your services or purchasing items.
Employment Practices Liability
Liabilities like these occur when a former or current employee claims that your business or company gave them unfair treatment. Most practices of standard employment liability have claims that include discrimination, sexual harassment, employment contract breach, and issues involving payroll. Businesses sued for employment practices usually have to face lawsuits and are forced to have all damages paid.
Cyber Liability
Problems concerning cyber liability surface when your business experiences a breach of data or significant cyberattack, resulting in compromised personal customer information. If you encounter this situation, the company should bear the responsibility of informing the customers involved, lost data recovery, and securing the breached computer systems. Similar to the liability risks mentioned above, cyber liability can also lead to dealing with lawsuits.
Premises Liability
This refers to the duty of the business premises to its customers. However, the duty owed will have to depend on the actions of the customer inside the business. There is a possibility that consumers might sue the company for the negligence of visitors if they encounter any injuries or damages.
The industry will have failed to maintain the required standard of care. The victim will have to prove that the owner’s negligence caused the injury or loss. Lastly, the company should also understand that the visitor has legal rights regarding the inefficient standard of care.
Final Thoughts
Getting involved with these liabilities can cost a lot. But getting a business owner policy can help you cover all liability risks in only one package. With the right insurance package, you won’t have to be concerned with hefty fines and fees if a customer decides to sue you for an accident that occurred at work. You should get insurance if you want to establish a business to protect yourself from unforeseeable events.
