Operating a business today means dealing with more legal exposure than ever before.
Personal injury law impacts all sizes of business. Slip-and-fall accidents, workplace injuries, and more can suck your resources dry, tarnish your reputation and even force you to close your doors for good.
The good news?
Learning how personal injury law and business operations intersect empowers you to safeguard your company. Savvy business owners take this issue seriously and create the proper legal safeguards before problems occur.
In this article, you’ll learn:
- Why personal injury law is important to your business
- The actual financial costs to companies
- Common personal injury claims in the business world
- Practical measures you can take to protect yourself
Personal Injury Law and Business
Personal injury law is intended to provide recourse for victims injured by the negligence of others. Businesses must know that as an employer, you face liability exposure everywhere… from the parking lot to the loading dock.
The harsh reality is that every customer, employee, and product represents potential liability. Accidents occur, people get hurt, and lawsuits can follow. When lawsuits happen, it means big settlements and verdicts.
This is why most companies work with experienced New York Personal Injury Lawyers to understand their exposure and create defence strategies. Staying ahead of the curve when it comes to personal injury law risks protects both your bottom line and business continuity.
The business and personal injury relationship works both ways. While businesses can and do face personal injury claims, they also benefit from a legal system that sets clear standards of care. By knowing the standards and expected conduct, companies can develop protocols that minimise risk.
Personal Injury Law’s Real Financial Impact
Curious what workplace injuries cost?
The numbers will shock you. According to Liberty Mutual, U.S. businesses spend an estimated $1 billion a week on workplace injury costs alone. Yep, you read that right… one billion dollars each week.
And that’s not all…
The average workplace injury claim costs upwards of $40,000 in direct expenses. This doesn’t include indirect costs like lost productivity, overtime for temporary staff, and the potential litigation that ensues.
Take a look at what the costs add up to include:
- Medical costs and treatment
- Workers’ comp payments
- Legal defence costs and settlement amounts
- Higher insurance premiums
For small businesses, a single serious injury claim can sink the company. Large companies face exposure across multiple sites and thousands of employees. Either way, personal injury law creates financial obligations that should never be ignored.
The Bureau of Labor Statistics states private industry employers recorded 2.6 million nonfatal injuries in 2023. That’s millions of potential claims that can take their toll on a company’s finances and operations.
The Most Common Personal Injury Claims Against Companies
Different industries face different risks. The most common personal injury claims help businesses understand where to direct prevention resources for the best effect.
Premises Liability
Slip-and-fall accidents are among the biggest risks businesses face. Property owners have a legal duty to maintain a reasonably safe premises. A wet floor without a sign, a broken stair, or dim lighting are all premises liability claim starters.
Retail stores, restaurants, and office buildings face this risk every day. Businesses that take the time to do regular inspections and maintain detailed records of safety measures have the upper hand.
Workplace Injuries
Employees injured on the job file workers’ compensation claims, but third-party liability may be in play…
Defective equipment causing an injury? The manufacturer may face product liability. A contractor’s negligence causes the injury? They face personal injury liability. These overlapping liabilities create complex legal webs.
Product Liability
Any company that manufactures, distributes, or sells a product faces product liability risk. Design defects, manufacturing flaws, or inadequate warnings can result in injury claims.
Product liability cases often have multiple defendants and can even turn into mass tort cases.
Vehicle Accidents
Delivery vehicles, company cars, and employee drivers place companies in motor vehicle liability positions. When employees cause accidents while doing work activities, the company is partly liable.
Fleet management and driver training all play into this exposure reduction.
Unique Aspects of Business Personal Injury Cases
Personal injury cases against businesses are different than personal injury claims against individuals in a few key ways.
Here’s why:
Businesses have deeper pockets and more insurance coverage. This makes them an attractive target for plaintiff attorneys. They know winning a claim against a business means a higher settlement than the same claim against an individual.
Juries can also view corporate defendants differently. There is an expectation the business should have foreseen and prevented the harm that occurred. This perception sometimes influences larger verdicts and damage awards.
Documentation is key in a business personal injury case. The company must be able to show safety protocols were followed, training was given and received, and the appropriate response was taken when any hazards were brought to the company’s attention.
What You Can Do To Safeguard Yourself
Protecting your business from personal injury liability requires a layered approach. No single strategy or method is a silver bullet, but layered solutions reduce exposure risk.
Put in place complete safety programs
Safety training for employees is not an option… it’s mandatory. Document every training session and keep files that prove you meet industry safety standards.
Regular safety inspections are also critical. Identify hazards before they cause injury by walking the facility and looking for things to fix right now.
Maintain appropriate insurance
General liability insurance is the first line of defence against personal injury claims. Go over your coverage limits every year and change as needed based on business changes and growing risks.
Umbrella policies can provide excess protection above and beyond your primary limits. The cost of a premium increase is nothing compared to being uninsured when a loss occurs.
Create an accident response protocol
How your business responds to accidents when they do occur matters a lot. Develop procedures for:
- Providing immediate medical care
- Documenting the accident in detail
- Preserving evidence
- Reporting to the insurance company
- Talking to injured parties
A quick and professional response can limit both the severity of injuries and the resulting legal liability.
Engage a legal professional
Don’t wait until a lawsuit is on the doorstep to engage a lawyer. Proactive legal review of policies, procedures, and contracts can identify vulnerabilities before they become a real problem.
Employment practices, vendor contracts, and customer contracts are all fair game for legal review with an eye to limiting liability.
Wrapping Up
Personal injury law affects how businesses operate on a daily basis. The stakes are financial and measured in the billions spent each year on workplace injuries alone.
Smart business owners know this reality and respond by:
- Understanding the specific risks their company faces
- Creating and executing on comprehensive safety programs
- Maintaining appropriate insurance coverage
- Documenting everything with extreme care
- Engaging a legal professional before problems occur
The intersection of personal injury law and business operations is only going to grow. If the current litigation trends are any indication, legal exposure is increasing. Companies who take this issue seriously will protect not just their financial resources, but their ability to keep operating.
Prevention is much less expensive than litigation. Creating a culture of safety and compliance is good business sense, and keeps you out of court.
