Business owners face a number of obstacles in the process of creating and establishing their companies. Common obstacles for growing companies include marketing challenges, competition from nearby businesses, hiring and keeping the best people, and reducing expenses. However, one of the most significant obstacles a business can face comes from lawsuits, either from former employees, customers, or other companies. Regardless of the lawsuit's outcome, a single business lawsuit can accumulate tens of thousands of dollars in court costs and attorney fees. In today's blog post, learn about the three most common lawsuits that can devastate your business, and how to best protect your business.
A common lawsuit companies may face is in regards to bodily injury when a customer, vendor, or other non-employee is injured on the premises. For example, a restaurant customer might sue if they suffer an allergic reaction due to poor menu labeling, a vendor might sue if they are injured from a falling light or other equipment, or a retail customer may sue for slipping and injuring themselves on a wet surface inside or outside the business.
Breach of Contract
Another reason why a business may face a lawsuit is because of a breached contract. If your company fails to meet the terms of a signed contract, a lawsuit may be filed claiming a breach of contract. For instance, if your company fails to deliver a final product, meet a specific deadline, or pay for services rendered, a lawsuit may be filed to recover funds and award damages to the suing party.
Finally, companies may face a devastating lawsuit from their own former employees if an individual is wrongfully terminated from their position. A business may be found in violation of federal as well as state laws for firing an individual based on discrimination, or a company may be held liable for terminating an employee for being a corporate whistleblower or if they fail to document issues with underperforming employees. For these instances, Employee Protection Liability Insurance offers companies insurance coverage in the event of a lawsuit from a former employee.
In these instances, a single lawsuit can result in a judgment against a company ranging from the thousands to the millions of dollars, depending on the severity of the issue and any pain and suffering caused by the incident. Having General Liability coverage, Excess Liability coverage, and Employee Protection Liability Insurance are smart investments for many small businesses that cannot absorb the cost or damages from a lawsuit. Aegis Insurance & Financial Services helps protect businesses of all industries by offering top-quality commercial insurance solutions at competitive rates. Contact Aegis today at 713-850-7622 for more information, or go online for a free quote!