Despite their own efforts, many employers find themselves subject to frivolous lawsuits against businesses. In many cases, despite their best legal efforts, but unfortunately, occasional changes in federal and state CO Vid-19 guidelines and health and safety standards have left employers vulnerable to costly and opportunistic lawsuits. For those employers facing such lawsuits, it’s certainly not fair to punish these same employers who have always stepped up to the plate when time of necessity. This is especially true since most employees are usually employed by larger companies that have the resources to fight frivolous lawsuits and counter-suits.
What’s behind the increased prevalence of frivolous lawsuits against businesses?
There are many reasons, but the one we’ll discuss here is the increasing tendency toward corporate mergers and acquisitions. For example, a corporation may acquire other companies with which it does not compete directly, driving prices down and creating a situation where the acquired firm becomes its target of lawsuits. If the claims being litigated ultimately prove to be unfounded, or if the plaintiff’s attorney proves to be unprofessional, the entire case may be thrown out.
Such lawsuits also often occur when corporations invest in “shell” companies to act as fronts for their own short-term liabilities while they develop new businesses.
While it may seem more prudent to invest in a “real” company that can weather the storm after acquisition, these strategies can also result in the litigant purchasing additional cases. Indeed, if the new shell company can no longer withstand the onslaught of a frivolous lawsuit, who will pay for it? Of course, the plaintiff.
It’s difficult to pin down the exact role that fraudulent lawsuits play in business liability protection.
However, there is plenty of evidence suggesting that fraudulent lawsuits are a significant factor in keeping premiums high, reducing profit margins, and causing delays and financial losses for businesses of all sizes. Therefore, companies should consider investing in Pandemic Business Liability Insurance to cover themselves from such lawsuits. In terms of what Pandemic Business Liability Insurance actually covers, there are many different types of lawsuits, some of which may not even involve the original company.
For example, a recent lawsuit relates to an outbreak of swine flu in five states, in which a single person brought the infection home with them to their home.
Although the initial person exhibited typical public health precautions and cleaned their home properly, it was not enough. Upon coming back to their workplace, the individual was unable to return to work, as their co-workers had become infected. With pandemic flu being a valid claim to file under the provisions of the law, and several additional plaintiffs currently waiting for compensation, it’s clear that a healthy, clean environment is no longer enough to protect businesses from frivolous lawsuits.
In recent years, several cases have been ruled on by judges that found major corporations in either negligent or conscious neglect, causing workers to become sick, get injured, or die.
While most suits against businesses deal with absenteeism, lack of productivity, and medical negligence, there are always accidents that involve something more than simple negligence. Such lawsuits are the easiest to bring and often require little more than a simple phone call to attorneys. Additionally, lawsuits filed against businesses due to pandemic outbreaks are very common. Since many diseases are caused by a variety of bacteria and virus, it makes perfect sense that the same measures being taken by businesses to protect their workers can also be applied to protect them from lawsuits as a result.
