Running a business is hard enough.
Few things scare entrepreneurs more than a personal injury lawsuit. Whether you’re the plaintiff or defendant, here’s the truth:
Personal injury law impacts nearly every business you can imagine. Whether it’s a customer falling on your premises, an employee injury at work or a car accident on the way to meet with a client.
Here’s the thing:
Knowing these simple things can save your business thousands. Literally. Okay, let’s go.
Here’s the roadmap:
- Why Personal Injury Law Matters For Business Owners
- The Most Common Personal Injury Claims Entrepreneurs Face
- Rear-End Accidents and Business Vehicles
- How To Handle A Personal Injury Claim
- Simple Ways To Protect Your Business
Why Personal Injury Law Matters For Business Owners
Most entrepreneurs don’t think about personal injury law until something bad happens.
By that point it is too late. Small businesses pay for 48% of tort costs. Yet they only make up 20% of business generated revenue. That isn’t a fair share.
Why does this matter?
As just one lawsuit can destroy years of blood, sweat and tears in mere months. Informed business owners can:
- Avoid costly mistakes when incidents happen
- Respond fast and protect their assets
- Handle claims without panic or guesswork
- Save massive amounts on legal fees later
The Most Common Personal Injury Claims Entrepreneurs Face
Not all personal injury claims are created equal.
Some come from injuries in the workplace. Others happen when a customer is hurt on your property. But most personal injury claims are caused by motor vehicle accidents. Vehicle accidents are responsible for 52% of injury cases each year.
That includes:
- Delivery vehicle crashes
- Company car accidents
- Employees driving for work
- Rear-end collisions at stoplights and intersections
Here’s what makes vehicle accidents especially tricky for business owners:
If your employee is driving for work purposes and gets into a crash, the company can be liable. Liability can spell disaster. Any person that is driving and becomes injured in a crash while on the job may also have a claim against your company or your insurance company. Consulting with a rear-end accident attorney sooner rather than later can have a huge impact on the outcome.
Note: Rear-end collisions are by far the most common type of vehicular accident in the U.S. If your business uses vehicles in any capacity, this is one scenario you simply can not afford to overlook.
Rear-End Accidents and Business Vehicles
Rear-end accidents happen fast.
You’re stopped at a light one second, and the next you’re picking up insurance phone calls, writing injury reports, and fighting off a lawsuit. The NHTSA says rear-end collisions accounted for 28.4% of traffic crashes during a recent year.
Why are these crashes such a headache for entrepreneurs?
- The driver at the back is almost always presumed at fault
- Injuries like whiplash can lead to big claim payouts
- Business insurance rates can climb sharply after a claim
- Multiple parties (driver, employer, insurer) often get pulled into the case
That last point is important. If one of your employees gets into a rear-end accident while on the job, chances are your company will be liable. A reputable rear-end accident attorney can help determine fault, damages, and the wisest course of action for your case.
How To Handle A Personal Injury Claim
So what happens when a claim actually lands on your desk?
Calm down. Don’t stress. Here’s a 4-step game plan you can use to manage ANY personal injury matter:
Step #1 — Document Everything
Pictures, witnesses names, incident reports, video footage if there are any cameras in the area. Any evidence you can get on file will set you up down the road.
Step #2 — Notify Your Insurance
Contact your insurer immediately. Delaying may void your claim coverage.
Step #3 — Get Legal Help Fast
A skilled lawyer can assess your claim and tell you the wisest course of action to take. Keep in mind — approximately 95% of injury cases settle before they ever go to trial. That means negotiations, not trials, is where most cases are won or lost.
Step #4 — Don’t Talk To The Other Side Alone
Anything you say to the opposing party or their insurance company can and will be used against you in the future. Speak to your attorney.
Simple Ways To Protect Your Business
Prevention is way cheaper than defence.
There are approximately 62 million preventable injuries that require medical treatment every year in the U.S. alone. Your business is more likely to get hit with a claim than you may think. Take these easy steps today to help reduce the chance of a personal injury claim sitting on your desk:
- Obtain adequate insurance coverage — commercial general liability insurance and commercial auto are non-negotiable essentials for all business owners
- Train your staff — drivers, warehouse workers and customer facing employees all require adequate safety training
- Ensure your premises are safe — clear walkways, wet floor signs and adequate lighting are appreciated
- Document your safety policies — written procedures show you took reasonable care
- Review contracts regularly — waivers and indemnity clauses can save you lots of money down the road
Companies that think ahead almost always win when a claim occurs. Those that do not end up learning the hard way (and paying much more for the lesson).
Bringing It All Together
Personal injury law is one of those areas most entrepreneurs would rather ignore.
However, neglecting it can cost you thousands of dollars and countless sleepless nights. Any claim can turn into a months-long battle if approached incorrectly. Let’s review what you’ve learned so far:
- Most personal injury claims involve motor vehicles
- Rear-end accidents are the most common type of crash on U.S. roads
- Small businesses carry a huge slice of overall tort costs
- Most cases settle out of court through negotiation
- Prevention and good insurance are your best defence
Whether you commute for work, own a store front or fleet of vehicles, or have employees that drive: at some point, personal injury law will affect your business. Understanding the basics now can save you thousands of dollars (and many sleepless nights) in the future.
Speak with an attorney licensed in your state today. Seeking legal counsel before something goes wrong is one of the best steps any business owner can take to protect their business’s future.
