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Being in business today can be somewhat of a speculative venture given that almost 20% of businesses fail within their first year. For those that make it well beyond this point the coast is never entirely clear as business owners everywhere must remain vigilant of ever-present risks such as competitor practices, shifting regulatory landscapes, and economic uncertainties.

Amid these challenges, business owners must factor in yet another cost of doing business. In today’s highly litigious society, businesses operate under the specter of potential legal action which can see them embroiled in costly and lengthy disputes. According to recent figures, the corporate cost of litigation in the U.S. was $22.8 billion in 2020. Not only can such actions be damaging to a company’s bottom line, but also to its reputation and brand.

To help businesses avoid the risk of potential litigation, this article has outlined common personal injury liabilities that businesses may face. With greater awareness of these legal risks, business owners can better manage and mitigate them, safeguarding their operations and ensuring long-term success.

Premises Liability

Premises liability is a legal concept that holds a business owner liable for any injuries or accidents that occur on their premises as a result of their negligence. The law places a duty on business owners to take reasonable measures to ensure their premises are safe for the public and their employees.

Common injuries that can result in a premises liability claim include slip and fall accidents, dog bites, elevator accidents, and negligent security. If you would like legal advice following a slip and fall accident in the Michigan area, consider booking a free consultation with an experienced personal injury lawyer at Matz Injury Law, who can advise you of your rights and options.

A prudent business owner should have adequate premises liability insurance in place to cover the legal costs of a successful claim against them. Without this coverage, a business faces the risk of heavy financial losses which can significantly hamper its operations and business continuity.

Product Liability

Product liability refers to the legal duty placed on the parties involved in the manufacture and selling of a product. The law allows a person who has been injured by an unsafe, defective, or damaged product to claim compensation from the responsible party. 

An injury can occur due to a defect in the design or manufacturing of a product, a failure to provide adequate safety instructions or warn consumers of the potential risks associated with the product, and other scenarios that point to negligence somewhere along the supply chain.

To successfully file a claim for product liability against a business owner, the injured party must be able to prove that the product in question was defective and their injuries were directly caused by this defect. Additionally, they must also be able to show that they were using the product according to its intended use, thereby establishing the foreseeable nature of the harm caused.

To minimize their exposure to such claims, business owners should invest in measures such as quality control to ensure their products adhere to a required standard as well as thorough testing and clear labeling on products to explain correct use and warn of any inherent risks that may be associated with the product.

Employment-Related Claims

Business owners also need to be mindful of the safety and well-being of their employees to avoid facing liability for harm or injury caused to them while at work. Business owners have a duty of care to their employees which requires them to provide a safe working environment and to take reasonable steps to safeguard them against accidents or injuries.

Failure to do so may result in an employment-related claim being brought against a business owner. This will typically require the employee to prove that the employer breached their duty of care and was, therefore, negligent. 

The concept of vicarious liability may also apply, holding business owners liable for the negligent actions of their employees while they were performing their duties. To mitigate these risks, business owners should take steps such as ensuring safe working practices and adequate training and supervision of their staff.

An awareness of the potential legal risks associated with various personal injury liabilities can equip business owners with the foresight and actions needed to minimize the likelihood of such incidents and protect the overall well-being of their business.

Published by: Nelly Chavez