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4 types of torts that can harm your business

On Behalf of | Jan 3, 2024 | Business Litigation

In the realm of business, legal pitfalls can be as treacherous as a hidden iceberg.

One such area of concern is torts. These are wrongs committed against individuals or their property, leading to legal liability.

1. Negligence torts: A slippery slope

Negligence, a common tort, occurs when a business fails to exercise reasonable care, resulting in harm to others. This harm could be physical, financial or even reputational. For instance, if a store neglects to clean a spill promptly, leading to a customer slipping and getting injured, it may be liable for negligence.

2. Product liability: A fault in the assembly line

When businesses produce or sell defective products, they open themselves up to product liability torts. This occurs if a consumer sustains harm due to a flaw in the product’s design, manufacturing or inadequate warnings. Businesses must ensure the safety of their products to avoid legal repercussions.

3. Intentional torts: Deliberate harm, unwanted consequences

In some cases, harm caused by a business may be intentional. Intentional torts include actions like fraud, defamation or interference with contractual relations. For instance, spreading false information about a competitor to tarnish their reputation can lead to a defamation lawsuit, posing a significant threat to the business involved.

4. Torts against property: Guarding against intrusions

Torts against property involve interference with a business’s possessions or assets. Trespassing, nuisance and conversion are examples. If a business’s neighbor continually discharges pollutants that damage the property, it can lead to a nuisance tort.

In 2020, tort costs amounted to $443 billion. Understanding the nuances of torts is necessary for businesses aiming to navigate the legal landscape successfully.

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