Tortfeasor

These are situations where a business could be considered the tortfeasor:

• A client trips over equipment left out at a construction jobsite and gets injured.
• A coffee shop employee accidentally damages a customer’s property.
• An IT consultant gives incorrect advice that leads to financial loss.
• A delivery driver causes an accident while on the job.

If your business caused the harm, you could be legally responsible—even if it was an honest mistake.

A tort is a civil wrong (not a crime) that causes harm to another person or their property. Tort cases usually involve claims for money damages, not jail time. The most common types of torts for small businesses include:

• Negligence (most common): You failed to act with reasonable care. For instance, a customer slips on a wet floor in your clothing shop because no warning sign was posted.
• Intentional torts: You intentionally committed a harmful act, such as making false statements about a competitor that damage their reputation.
• Strict liability: You’re responsible even if you weren’t careless. For example, a product you sold causes an injury because it was defective.

Here’s how common policies help:

• General liability insurance covers bodily injury and property damage claims, as well as personal and advertising injuries.
• Business owner’s policy (BOP) bundles general liability and commercial property insurance, often at a lower cost than if you purchased the coverages separately.
• Professional liability insurance, also called errors and omissions (E&O), this policy covers claims related to mistakes in the professional services or advice you provide.
• Commercial auto insurance covers accidents involving vehicles owned by your business.
• Commercial umbrella insurance adds a layer of extra protection when claims exceed your standard policy limits.

If your business is accused of being a tortfeasor:

1. Notify your insurance provider immediately.
2. Don't admit fault before speaking to your insurer or attorney.
3. Document everything (photos, witness info, timelines).
4. Work with your insurer’s legal team.
5. Review your coverage limits and consider risk management improvements.