At Guardian Insurance in Omaha, NE, we help businesses protect themselves from liability by providing expertly chosen insurance solutions to our clients in Nebraska and the Midwest. Read on to learn more about what can happen when an employee causes harm to your business and how we can help.
What Happens When My Employee Damages Customer Property?
As a company owner, it is often necessary to find employees to help run the business. Sometimes, those employees will act in ways that cause harm to the company and its customers.
When this happens, letting the incident slide can be tempting, hoping the damage is minimalized. However, doing so may result in greater liability for the company than if it had acted to prevent or remedy the situation.
Legal Ramifications When Employees Damage Customer Property
The first thing to realize is that every employee is an extension of your business. When an employee causes damage to a customer’s property, it is essentially the same as if your business caused the injury.
This means that the customer has a right to bring legal action against the company in question to recover the damages caused. This is true regardless of whether the employee was acting within the scope of their employment or not.
The cost of litigation is often prohibitive for a small business. A study released by the U.S. Chamber Institute for Legal Reform found that commercial lawsuits cost over $343 billion in 2018 alone. Small businesses accounted for 53% of all commercial cases filed that year. Many companies are one suit away from bankruptcy.
Protecting Your Business
Commercial insurance protects businesses from lawsuits by providing a financial response to a covered loss, such as the damage caused by an employee acting outside the scope of their employment. This type of coverage is essential for businesses that can’t usually handle the financial effects of a lawsuit and shutting down.
If you own a business in Nebraska or the Midwest, reach out to GGuardian Insurance in Omaha, NE today to learn more about commercial insurance.