Blog

0 minute read
The Difference in Liability From the Perspective of Businesses and Individuals
Cameron Hawkins • May 30, 2024
personal vs business liability

The definition of liability as a concept does not change based on the roles of parties in injury claims, but how each party views liability can be dramatically different.



Liability From a Business Owner’s Perspective

From a business owner’s perspective, liability represents their legal responsibility for damages or injuries caused by the actions of employees, services or products. The goal of a business is to minimize liabilities wherever possible, as they potentially represent a significant risk of financial loss due to lawsuits or legal claims.


Liability has far-reaching consequences for the operation of businesses, and there are a number of products and services that relate to liability protection and mitigation.


Business Liability Insurance

One of the more tangible and costly consequences of liability as a concept is business liability insurance. Although it’s not a universal requirement for every business in Georgia, there are many that do require some form of business liability insurance.


  • Many licensed professionals will need to carry it as part of their licensing requirements 
  • Some businesses operate in industries where maintaining business liability insurance is a requirement of client contracts
  • Owners of commercial properties often require tenants to carry liability insurance as part of the lease agreement for their space
  • Many financial institutions that lend to businesses have business liability insurance requirements in business loan contracts


Even if a business is not required to carry business liability insurance due to one of the above requirements, it’s typically a good idea to have. Liability claims can ruin a business, and insurance is the primary mode of protection.


Risk Assessment and Management 

Many businesses conduct some form of risk assessment or put in place measures to manage potential hazards. This can cover a whole host of proactive measures, from having company policies regarding spill cleanups to reduce the risk of slip and fall injuries to in-depth quality assurance and defect testing on manufactured products.


Legal Compliance

Businesses in some industries must adhere to a host of laws and regulations that have been written specifically to mitigate risks related to legal liabilities. Although these laws can be cumbersome and may negatively impact efficiency in some respects, they may have the benefit of reducing the likelihood of customer injuries that could expose a business to liability.


Contracts and Waivers

Liability waivers and limits often play an important role in business contracts. Included in these agreements are specific descriptions of the nature of any risks assumed by the parties of the contract as well as the limits of the business’s responsibilities for certain types of damages or injuries. This can range from actual physical injuries to financial consequences, like failure to deliver certain products or services on the agreed-upon date stipulated in the contract.


Employee Training and Safety

This involves training employees to adhere to the business’s safety protocol and perform their job duties safely to minimize the chance of accidents or injuries that might lead to liability claims. While not all types of safety training are required by law, many businesses would rather invest in training than be forced to pay large liability claims or the cost of litigation.


Liability From the Individual’s Perspective

From the individual’s perspective, liability can represent their ability to hold someone else financially responsible for injuries or damages they suffer due to the negligent or careless actions of a business or another person.


In other words, if someone runs a red light because they were distracted and hits you, liability dictates that the person who ran the red light should pay for all the financial and emotional costs you incurred due to their actions.


Proving Fault or Negligence

A key aspect of establishing another party’s liability for a person’s injuries is proving the other person was at fault and negligent. From a legal standpoint, this means proving that the party who caused your injuries owed you a duty of care and breached that duty by acting in a certain way (like doing or not doing something), which directly led to your injuries.


Product Liability and Premises Liability

Some types of injury claims work a little differently. In a product liability claim, injured people don’t need to prove the manufacturer, retailer or distributor was negligent, just that the injury was caused by using the unmodified product as instructed, intended or in a foreseeable fashion. Some types of premises liability, like dog bites, operate under a similar strict liability structure. Simply proving you were injured by the product or dog establishes the manufacturer/owner’s liability.


Personal Injury Claims

The most common resolution for liability involves insurance claims. The average person or business can’t always afford or doesn’t want to pay high medical costs, lost wages and pain and suffering damages out of pocket. Depending on the seriousness of the injuries, those types of damages can be ruinous, even for businesses.


Liability insurance, like home insurance, auto insurance and business liability coverage, protects policyholders from liability by paying for damages and, by necessary extension, financing a legal defense against liability claims. It is in the insurance company’s interest to protect the policyholder to minimize claim payments, which is why they fund the policyholder’s liability defense. 


Business Liability Defense Lawyers in Atlanta, GA

While both individuals and businesses can benefit from independent liability defense lawyers, businesses, government agencies and other organizations are some of the most frequent users of liability defense services.


Insurance companies may hire local insurance defense attorneys to defend local policyholders in the business defense lawyer’s jurisdiction. In some cases, businesses may not want to rely solely on the insurance company for their legal defense, especially if their interests aren’t entirely aligned.


The Law Office of Cameron Hawkins advocates for businesses and plaintiffs in cases and is ready to fight for your interests. Call us at 678-921-4225 to get started. 

By Cameron Hawkins January 24, 2025
Unsure whether claims-made or occurrence malpractice insurance is right for you? Cameron Hawkins Law explains the key differences and how each policy impacts coverage.
By Cameron Hawkins January 15, 2025
Service liability risks can lead to costly lawsuits. Cameron Hawkins Law in Atlanta explains how to assess your business for potential risks and protect against legal claims.
By Cameron Hawkins January 14, 2025
Strong company policies help prevent workplace harassment and legal issues. Cameron Hawkins Law in Atlanta outlines key strategies to build a safe, compliant work environment.
By Cameron Hawkins January 10, 2025
Avoid wrongful termination claims with strong employment contracts. Cameron Hawkins Law in Atlanta shares best practices to safeguard your business and ensure compliance.
By Cameron Hawkins December 20, 2024
Learn how to handle claims from employee negligence effectively. Contact the Law Office of Cameron Hawkins in Atlanta, GA, for expert legal advice today!
By Cameron Hawkins December 16, 2024
Discover how social media posts can impact business liability cases. Get expert legal guidance from the Law Office of Cameron Hawkins in Atlanta, GA.
By Cameron Hawkins December 10, 2024
Learn why thorough documentation is vital when defending against personal injury claims. Protect your rights with expert insights from the Law Office of Cameron Hawkins in Atlanta, GA!
By Cameron Hawkins December 6, 2024
Need help with claims involving independent contractors? Contact the Law Office of Cameron Hawkins in Atlanta, GA, for expert legal guidance today!
Learn how to address employee negligence and mitigate its impact. The Law Office of Cameron Hawkins
By Cameron Hawkins November 27, 2024
Employee negligence can have significant consequences for businesses, potentially resulting in costly claims, damage to reputation and operational setbacks. Fortunately, there are effective approaches to discourage employee negligence and handle claims if they do arise.  Employee Negligence and Its Impact on Business Liability Employee negligence occurs when an employee fails to perform their duties with reasonable care, resulting in harm or loss. Examples can range from minor oversights, like forgetting to secure sensitive documents, to severe incidents, such as driving a fleet vehicle while intoxicated or ignoring safety protocols. The implications of employee negligence may include: Financial Loss : Claims stemming from employee negligence can lead to costly legal battles, payouts and increasing insurance premiums. Reputation Damage : High-profile negligence cases can harm a company's public image, leading to a loss of trust among customers, partners and potential hires. Clients or vendors may hesitate to engage with a company perceived as having poor standards or safety protocols. Operational Disruptions : The fallout from a negligence claim can disrupt daily operations, particularly if investigations or legal proceedings demand substantial time and resources from company leaders. Increased Regulatory Scrutiny : Depending on the industry, negligence can invite additional oversight from regulatory bodies, resulting in audits, fines or mandatory corrective actions. Strategies for Preventing Employee Negligence Preventing employee negligence is one of the best ways to defend your business against liability claims. Companies can adopt a proactive approach by implementing policies, training and monitoring mechanisms. Comprehensive Training Programs Employees should undergo regular training that covers core responsibilities, industry regulations and specific job functions. Training should also address general areas like workplace safety, cybersecurity and customer service. In fields with strict safety protocols, like healthcare or construction, scenario-based training is particularly valuable. Clear Policies and Procedures Establishing clear, accessible policies is crucial to setting standards for employee behavior. These documents should outline expected practices, potential consequences for negligence and steps employees can take to prevent errors. Implementing clear procedures not only improves adherence but also provides a reference for employees who might be unsure of the correct action to take in a particular situation. Use of Technology for Monitoring and Accountability Modern technology can play a valuable role in reducing negligence, especially in industries with high-risk activities. Some examples include: Security Monitoring Software : These tools track data access and ensure that employees do not share or mishandle sensitive information. In industries like finance or healthcare, these tools are essential for maintaining compliance and accountability. Automated Task Trackers : For industries with repetitive or procedural work, task trackers can help employees follow through on each required step. These systems improve productivity and reduce the chances of missing critical steps. Establishing a Culture of Responsibility and Accountability Creating a culture where employees feel responsible for their actions and comfortable reporting mistakes encourages vigilance and corrective action. This can be achieved through: Open Communication : Encourage employees to voice concerns and share suggestions for improving workflows. Rewarding Safety-Conscious Behavior : Recognize employees who demonstrate responsibility and attentiveness to reinforce a safety-conscious work environment. Managing Claims Resulting From Employee Negligence Despite preventative measures, claims may arise due to employee negligence. Effectively managing these claims is essential to protect your company from potential damage. Below are some steps for handling claims due to employee negligence. Investigate the Incident Thoroughly An in-depth investigation is crucial for determining the cause of an incident and assessing the validity of the claim. Collect all relevant documentation, including any witness statements, video footage or internal records, to understand what led to the incident. This investigation not only provides clarity but also demonstrates that your company takes such incidents seriously. Notify Insurance Providers Promptly Contact your insurance provider as soon as a claim arises. Timely notification ensures that claims are managed within policy guidelines and increases the likelihood that legal fees and settlements will be covered. Insurance providers can also guide you through the claims process, offering additional support for your response strategy. Develop a Communication Strategy Maintain transparent communication with affected parties, including the claimant, employees involved and any stakeholders. Avoid admitting liability prematurely, as this can weaken your position in negotiations or court. Instead, convey that the incident is under investigation and assure all parties of your commitment to rectifying the issue. Seek Legal Guidance Legal support is critical to managing claims effectively. An experienced attorney can assess the claim, advise on liability issues and represent your company in negotiations or court. An experienced business liability defense lawyer can also help identify and develop potential defenses. Document and Improve Procedures After resolving a negligence claim, review and improve any relevant policies, procedures or training programs to prevent future occurrences. Identifying gaps and making changes not only enhances safety but also reduces the likelihood of future claims. Additionally, demonstrating a commitment to improvement can favorably impact settlements, insurance renewals and regulatory reviews. Contact Our Skilled Atlanta Business Liability Litigation Attorneys Today If your business is facing claims due to employee negligence, The Law Office of Cameron Hawkins is here to help. With extensive experience defending companies against negligence claims, our team will work diligently to protect your business’s financial interests and reputation. Contact us today for a consultation or give us a call at (678) 921-4225.
By Cameron Hawkins November 19, 2024
Thorough documentation is your first line of defense. Learn how the Law Office of Cameron Hawkins in Atlanta helps businesses navigate personal injury claims.
More Posts
Share by: