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5 Typical Lawsuits Businesses Are Held Liable For

5 Typical Lawsuits Businesses Are Held Liable For

Starting a business and leading it to success is a very big accomplishment that every entrepreneur longs for. However, as a business owner, you need to understand that running a business isn’t just about selling goods and services alone. There are also many pitfalls you need to watch out for because some of them, such as lawsuits, can easily sink your business.

The following are some of the common lawsuits that you want to defend your business from:

Breach of contract

When you have employees working for you as well as clients, there will likely exist several contracts. These contracts usually extend from employment, payment plans, distribution of products, contractual service obligations, among other business interactions. As a business owner, you breach a certain contract when you fail to comply with the stipulated terms.

Consequently, this leads to the aggrieved party filing a lawsuit against you. It’s important to note that in this lawsuit, the aggrieved party might demand monetary compensation or simply a remedy to the situation. Therefore, you need to choose what path you’ll take when it comes to initiating the lawsuit.

Discrimination suits based on employment

A lawsuit can be filed by employees against your business because of perceived discrimination at the place of work due to age, gender identity, race, pregnancy status, sex, disability, or even religion. It’s important to note that employees also file lawsuits against businesses for wrongful termination, harassment, or lack of overtime pay.

Also, there are some employees who file whistleblower lawsuits, but these are not so common. Therefore, you might need to hire an attorney for the business to help you deal with such litigations. If you’re looking for an L&I attorney that will help you seek reasonable remedy for such situations, look for law firms in your area that cover those disciplines.

Partnership disputes

There are several ways that a business partnership can encounter disputes. For example, disputes can occur through documentation, attempts to change business operations, or even introducing new developments into the business. If these disputes are not solved to the satisfaction of both parties involved, they can easily progress to lawsuits.

This is very common with shareholder disputes. If the shareholders feel that something isn’t running properly in the business, they can file a lawsuit against the partners. You want to protect the business against these lawsuits at all costs because they tend to be very costly and can easily halt business operations.

Discrimination lawsuits that are not based on employment

Discrimination lawsuits against businesses aren’t always filed by employees. At times, these lawsuits are filed by customers, suppliers, vendors, and other individuals that interact with the business. For example, a customer might decide to file a lawsuit against a business that refused to serve them based on their race, gender, religion, or disability.

This is usually a very costly lawsuit for most businesses. This is because it might develop a bad reputation for the businesses, resulting in a decline in sales and low profits.

Employee injury

As long as something happens at the workplace that leaves an employee injured or sick, worker’s compensation should be able to cover it. As a business owner, you want to ensure that your employees are fully compensated if something related to work causes them personal injury or physical pain.

Failure to abide by the workers’ compensation will end up attracting huge fines or even jail time, depending on the state your business is located. Even if you opt to settle such lawsuits outside the courtroom, the chances are that your business might end up paying hundreds of thousands of dollars.

It’s important to note that some specific processes and insurance carriers provide an alternative for overcoming such lawsuits. However, the best approach is to take the necessary insurance cover to avoid such legal disputes.

Summing Up

As a business owner, you want to ensure that you prevent lawsuits against your business before they happen. It’s also important to review your insurance options and hire a qualified and experienced attorney who will be there to offer important legal advice whenever you need it. This way, you’ll be able to lead your business to success and achieve your personal goals.

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