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Reasons Contractors get Sued

 

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 Contractors 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 contractors get sued by employees and customers.

 

EMPLOYEE REASONS

Discrimination- These lawsuits happen when an employee feels that they are mistreated based on race, religion, gender, age, sexuality, or social class.

Sexual Harassment- This is a very common case that happens when an employee feels that their managers 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. They are one of the common reasons contractors get sued by their employees.

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.

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.

Employee Complaints- If an employee gets fired shortly after making a justified complaint about your business; they can sue you for wrongful termination.

 

CUSTOMER REASONS

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.

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.

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.

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. This can be one of the priciest reasons contractors get sued.

There are many reasons contractors get sued by their employees or customers. That’s why it’s important that you operate with care and caution. Sometimes, issues are unavoidable. To protect your business from those unforeseen events, be sure to properly cover your business and employees with Contractors Insurance. If you need contractors insurance or feel that you are paying too much, give us a call. SkyBlue Insurance is an authorized rep for some of the most notable Contractors Insurance providers in the country. You can give us a call at 1-800-771-7758 or you can get instant results by requesting a free Contractors Insurance quote.