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What Should You Do If Your Atlanta Business Is Sued?
Yong Lee • February 28, 2022
business being sued

Contact your business insurance company and/or an appropriate litigation attorney after receiving a summons and complaint.


If you’re being sued by a vendor or a client over a contract dispute, you should speak with a business or commercial litigation attorney in a practice that focuses on commercial law. If you’re being sued for an alleged injury, you should contact a business litigation defense attorney that handles personal injury claims.


In many cases your insurance company will set you up with a legal defense team. If your insurance company doesn’t cover the claim against your business, you’ll need to assemble your own defense. It’s generally unwise to either ignore a complaint or attempt to represent your business on your own.


Types of Business Liability Defense Cases in Atlanta


There are a nearly limitless number of incidents or scenarios that might lead to personal injury litigation against a business. Someone might claim to have tripped over a raised threshold when entering your store. One of your employees may have allegedly caused a serious accident while they were driving a company fleet vehicle. A past client might accuse your company of doing unsafe work on their property that led to someone else’s injury.


Different types of businesses have more liability exposure than others, and the types of cases they might face depend on the types of products they sell or the services they provide.


Contractors in the construction industry might be named as defendants in an injury case against one of their past clients. Mass transit companies might be sued for slips and falls or assaults that happened at their stations or stops. Retail businesses might be sued for a slip and fall in their store or by a customer who was injured by a product they bought from the business.


In most of these cases, you’ll be defended by your insurance company. Since technically it’s your business liability insurance company who will likely bear the brunt of any verdicts against your business, the insurance company generally has a significant incentive to defeat claims against you.


When Insurance Might Not Cover the Damages in a Personal Injury Case


Most business liability policies won’t cover acts of intentional wrongdoing on behalf of a business or an employee. There are many ways in which intentional wrongdoing might be at issue in a personal injury case.


A business might have intentionally cut corners to reduce costs or participated in some other kind of corporate malfeasance to hide losses from investors.


Intentional wrongdoing in a business personal injury case often turns out to be the wrongdoing of the at-fault employee who committed a crime while on the job.


The doctrine of “respondeat superior” (or vicarious liability), which essentially means businesses are responsible for the actions of their employees, doesn’t apply to workers who aren’t acting within the scope of their job duties.


A delivery driver should only be delivering food, packages or whatever it is they’re required to deliver for their employer. It’s not within their job description to make unrelated personal stops or commit criminal activities.


A business wouldn’t be liable for the illegal actions of their employees if those actions weren’t in the worker’s job description.


That doesn’t mean a business escapes liability for every injury their employees cause. If an employee runs a red light while on a delivery and causes a serious accident, their employer could still be sued. The employee may technically have done something illegal due to their own negligence, but that action was done while performing their job duties.  


Liability Isn’t Always Clear Cut


There are many situations where there are legitimate questions regarding whether an employee’s actions were within the purview of their job duties. What if an employee who is distracted by a sales call gets in an accident while driving a company car to a business appointment?


They would have technically been performing their job duties when the accident occurred, even though they knew driving distracted was against the law. The employee could also potentially argue they were required to be on the call and get to their appointment on time.  


In many cases, it’s necessary for your business defense team to investigate the situation to develop the best possible case.


Should You Call a Business Liability Lawyer in Atlanta?


If you’ve been threatened with a lawsuit or your business has received a summons and complaint, it’s important to work closely with your insurance company’s defense counsel. If you feel like you need an independent assessment from local Atlanta business defense attorneys, Edwards & Hawkins would be happy to consult with you. Call us at (404) 526-8866 to schedule a consultation

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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.
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