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Lawsuits are Just Part of the Risk

Friday, September 18, 2015
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Business owners are aware they risk the financial consequences of an accident.  These are generally insurable events such as automobile accidents, injuries to customers or workers hurt of the job.

What many business owners fail to consider are other risks associated with accidents.

Reputational Risk

At Horton, we are seeing an increased use of press releases and negative publicity as a technique to apply pressure to improve a condition or following an accident.  This can do serious reputational damage to a company.  Even if the condition or violation is ultimately resolved, the damage to image is often difficult to reverse.

Regulatory Risk

A significant incident will often bring attention from a government regulatory agency.  This can result in fines or other costly sanctions which are not insured.  Your efforts to prevent accidents and maintain a safe workplace BEFORE an incident will be an important factor in how your firm is viewed by the regulator.  Don’t wait until there is an issue to consider your regulatory risk.

Criminal Risk

Did you ever think owning or running a business could make you a criminal? Click here to read The Economist article, “The Criminalization of American Business.”

All these risks are increased by a growing negative public view of business – a view sometimes pushed by government regulators and officials.  Click on the link to a report by Neil

Howe of Saeculum Research, “Big Business Under Fire.”  In this report, Neil writes about emerging trends in regulation and public attitudes.

 

 

 

Material posted on this website is for informational purposes only and does not constitute a legal opinion or medical advice. Contact your legal representative or medical professional for information specific to your legal or medical needs.

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