When we start a business, one of our main goals is to keep our employees and our customers happy. Unfortunately, there will be times when others have a less than favorable relationship with your company. There may even be times when an employee or customer will open a lawsuit against your business. Fortunately, if you have Business Insurance, you may be covered for legal fees and expenses involving lawsuits. That being said, lawsuits are stressful and emotionally and financially draining, so it’s best to avoid them when possible. Below are some reasons why an employee or customer may open a lawsuit against your business.
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No Clear Reason for Termination- If an employee gets fired, and you don’t explain to them why they’re getting fired, they can open up a lawsuit and make up their own reasons why they think they got fired. This will set them up to seem like a victim in the situation.
Falsely Firing for Bad Performance- If you terminate and employee for bad work performance, but all of their performance reviews bare positive results, it can appear like a wrongful termination.
Employee Complaints- If an employee gets fired shortly after making a justified complaint about your business, they can sue you for wrongful termination.
Sexual Harassment- This is a very common case that happens when an employee feels that their mangers or supervisors are highly inappropriate in a sexual manner. These cases also occur when employees are asked to do sexual things to keep their job or advance in the company.
Discrimination- Another common claim: these lawsuits happen when an employee feels that they are mistreated based on race, religion, gender, age, sexuality, or social class.
Company Makes a Mistake- If a customer pays for your services and you make an error or cause collateral damage, the client can sue your company for the value of the damages or the service.
Faulty Products that Cause Injury- If your company sells a product that malfunctions and causes injury or damage, you can be sued for the value of what was lost.
Injury at the Business Due to Negligence- Someone can open a lawsuit if they visited your place of business and got injured by a poorly placed machine or slipped and fell on a wet floor with no caution sign.
Breached Contract- People have also sued companies that don’t hold up to their end of a contractual agreement that caused a great loss in finance.
There are many more reasons why an employee or customer would sue a business. That’s why it’s important that you operate with care and caution. Sometimes, issues are unavoidable. To protect yourself from those unforeseen events, be sure to properly cover your business and employees with a good business insurance policy. You can actually go online right now andget a business insurance quote. Keep your customers and your employees safe and happy and protect the money in your wallet with business insurance.