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Business litigation often refers to disputes pertaining to the formation or operation of a business while commercial litigation are disputes under the Uniform Commercial Code (UCC). However, in common parlance many people use the terms interchangeably.

General Liability Insurance and Claims

There are many different types of business insurance claims. Recently published analysis by The Hartford Financial Services Group – one of the larger small business insurance companies in the U.S. – details the most common types of business claims.

They include:

• Burglary, Vandalism and Theft – 20 Percent
• Water Damage (and Freezing Losses) – 15 Percent
• Windstorm and Hailstorm Damage – 15 Percent
• Fire Damage – 10 Percent
• Slip and Fall Injury Claims – 10 Percent
• Product Liability Claims – Less than five percent
• Injury Claims – Less than five percent
• Libel and Slander – Less than five percent
• Auto Accidents – Less than five percent

Those claim types generally fall into one of two categories. The first – and the most common – are damages sustained by the business itself due to things like plumbing leaks, electrical fires, grease fires, storm damage, frozen pipes and the criminal actions of employees or external individuals.

What may be surprising to some business owners is just how high a percentage of claims were related to business liability and injuries. The fact that premises liability claims were essentially equal to fire damage claims should be a warning for business owners – liability lawsuits are fairly common.

Certain types of businesses have more exposure to injury claims. Manufacturers, pharmaceutical companies and even small businesses like exterminators that use dangerous chemicals might have exposure to product liability claims.

Any business that uses fleet vehicles, from trucking companies to small HVAC companies, could potentially be the target of auto accident injury litigation.

How to Mitigate Business Liability Risk

There are several things businesses can do to limit their risk of being the target of litigation or needing to file property damage claims.

Training, Security, Upkeep and Maintenance

Not every damage claim can be avoided. Atlanta is no stranger to high winds or hail, both of which can cause significant damage regardless of how much you prepare. On the other hand, fire damage is a potential risk that can be mitigated through training your employees, fixing faulty wiring and minimizing hazards.

Restaurants especially should take steps to limit their fire risks by making sure to install and service their fire suppression systems.

You can also minimize theft losses by performing background checks on new hires, installing cameras and investing in an effective security system. Some insurance companies will offer discounts for taking some of these steps.

Businesses frequently targeted by slip and fall lawsuits, like convenience stores, supermarkets and various other types of retailers, can make sure to train employees to promptly clean up spills, use wet floor signs and keep walkways clear.

Other Types of Business and Commercial Litigation

Both business litigation and commercial litigation are umbrella terms that can refer to a hugely diverse array of actions, from disputes among shareholders to product liability claims.

Maybe the most common types of commercial and business torts include:

• Disputes among partners or shareholders
• Breach of contract
• Consumer fraud
• Personal injury and product liability lawsuits
• Intellectual property disputes
• Unfair competition lawsuits
• Interference with business relationships
• Class action lawsuits
• Cybersecurity or data breach lawsuits
• Various types of securities litigations
• Tax disputes
• Debtor or creditor litigation
• Insurance disputes or bad faith litigation
• Environmental litigation
• Land use or zoning disputes 

Those are just some of the potential types of business litigation that may arise, and within each one there are potentially dozens of unique scenarios. Some businesses are also the target of various anti-trust efforts by the government or competitors.

You would be hard pressed to find a type of business or commercial interaction that couldn’t be the subject of litigation in some form or another. That’s why businesses need to be thorough in everything from the details of their supplier contracts to their employment contracts. They also need proactively protect their legal rights when it comes to things like intellectual property and their brand identity.

Maybe most importantly they need to carry adequate insurance and take steps to limit their business liability exposure.

Retain a Business Litigation Lawyer

Your insurance company will represent you in various types of business and commercial liability litigation. However, there are scenarios where your insurance company’s interests and your business’s interests won’t align. The insurance company will generally choose whichever path in litigation will cost them the least amount of money, even if that path results in harm to your business.

Having your own attorney that’s committed to representing your best interests – not the insurance company’s interests – may help safeguard the business you’ve invested so much time and effort into building.

Attorneys Donald P. Edwards and Cameron D. Hawkins have dedicated their careers to fighting for the rights of business owners. Their commitment to ethics and their genuine concern for their clients is a valuable asset in all types of business liability litigation.



You can learn more about protecting your business by calling (404) 526-8866 to schedule a free consultation.