Tortfeasor
A tortfeasor is someone who commits a wrongful act, causing another party to suffer a personal or financial loss.
What is a tortfeasor?
A tortfeasor is a person or business that commits a wrongful act (called a tort) that causes harm or loss to someone else. If you or your business are the tortfeasor, you may be held legally and financially responsible for injuries, property damage, or other losses.
To break it down, if your actions—or your business’s actions—hurt someone, you could be the tortfeasor in a lawsuit.
Examples of a tortfeasor for small businesses
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.
What is an example of a tort?
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.
What is vicarious liability?
Vicarious liability means your business can be held responsible for the actions of your employees or agents when they’re working on your behalf.
You might not personally commit the wrongful act, but your business can still be named as the tortfeasor.
For example, if your fence installation employee causes an accident while driving to a jobsite, your business may be liable for the damages.
This is one of the biggest reasons small businesses need proper general liability insurance.
How does business insurance help with tort claims?
If your business is named as a tortfeasor in a lawsuit, the right insurance can help cover:
- Legal defense costs
- Settlements or court judgments
- Medical bills and repair costs
Best policies to help protect against tort claims
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.
What should you do if you're named a tortfeasor in a tort lawsuit?
If your business is accused of being a tortfeasor:
- Notify your insurance provider immediately.
- Don't admit fault before speaking to your insurer or attorney.
- Document everything (photos, witness info, timelines).
- Work with your insurer’s legal team.
- Review your coverage limits and consider risk management improvements.
What are the risks of being named a tortfeasor?
One lawsuit can put your income, assets, and reputation at risk. Understanding what a tortfeasor is—and how insurance protects you—helps you stay prepared for accidents, mistakes, and situations outside your control.
Insureon makes it easy to get quotes from top-rated carriers and speak with insurance agents who are knowledgeable in your industry, so you can get the right protection for your business.
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