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Regardless of how carefully your business tries to avoid a lawsuit, it will almost inevitably face at least one in its lifetime. Cobb Cole’s Business Law attorneys specialize in Business Litigation matters, including liability lawsuits. They’ll help you navigate the legal process, provide expert counsel on your rights and options, and develop a defense strategy tailored to your case’s specifics.

Types of Business Liability Lawsuits

Customers, employees, stakeholders, and other companies can all bring a business liability lawsuit for cases involving personal injury, malpractice, breach of contract, environmental liability, and breach of fiduciary duty. Who sues generally depends on what happened and the legal claim involved.

Some of the most common types of business lawsuits include:

  • Contractual liability. Contract disputes, including employment contracts, contracts for goods and services, and failed loan agreements, are the #1 reason small and medium-sized businesses are sued.
  • Cyber liability. If a data breach or cyberattack affects an organization’s clients or customers, it could be sued for exposing sensitive information. Third-party contractors can be sued if they fail to prevent a data breach at a client’s business.
  • Premises liability. If a person is injured on a business’s property due to unsafe conditions such as a wet floor or faulty equipment, they can file suit to hold the company liable for their injuries.
  • Employer liability. If an employee is injured at work due to the employer’s negligence, they might sue, particularly if the claim cannot be resolved through workers’ compensation laws. Additionally, there are numerous claims an employee might bring based on wage/hour, retaliation, hostile workplace, and discrimination.
  • Environmental liability. Companies that pollute, illegally dispose of waste, or carry out other practices harmful to the environment can face local, state, and federal lawsuits.

Plaintiffs in business liability lawsuits generally seek financial compensation for losses like medical expenses, lost wages, copyright infringement, property damage, and pain and suffering, as well as attorney’s fees and costs of litigation.

How To Protect Your Business Against a Liability Lawsuit

Nine out of ten businesses experience a lawsuit at some point in their lifespan, with the average liability suit costing over $50,000. While large enterprises often have the capital to weather business litigation, small and medium-sized businesses can face significant financial harm, including bankruptcy or business failure.

Best practices for safeguarding your business against potential lawsuits include:

  • Invest in business insurance that goes above and beyond general liability insurance. Business liability insurance offers financial coverage for various claims that arise from products or business operations, helps cover legal defense costs, and protects a company’s finances and assets. Depending on your business type, consider professional liability, malpractice, workers comp, and commercial vehicle insurance.
  • Use written contracts prepared by a business law attorney who can help identify potential issues or areas of potential dispute.
  • Work with an attorney to develop policies and procedures that ensure legal compliance, and develop an employee handbook in order to train employees on what the policies are and why they exist. 
  • Secure company data by limiting access and defining how it is collected, stored, used, and destroyed.
  • Structure your business to protect you and your personal assets. Rather than forming a sole proprietorship, consider choosing a limited liability corporation (LLC), S-Corp, or C-Corp.
  • Establish open communication channels so employees feel free to voice concerns, nipping potential issues in the bud before they escalate to litigation.
  • Preserve materials that could be used as evidence, including emails, documents, and other company records.

A skilled business law or employment attorney can guide you on which steps your business should take to protect itself from potential liability lawsuits.

What Should I Do if My Business Gets Sued?

A liability lawsuit can literally cost a business everything it has. If your company is sued, it’s imperative to contact a business law attorney as soon as possible for legal advice. There is a limited amount of time to respond to a lawsuit. 

The business law attorneys at Cobb Cole can help you minimize the risk of liability lawsuits against your business, tailoring practical solutions that meet its unique needs. Contact us today to learn more or schedule a consultation.

Comprehensive legal services so you always know who to call.

At Cobb Cole we’ve stacked the deck. Each of our talented attorneys provide uniquely specialized service areas enabling us to offer an expansive variety of essential services to our clients. For each service we offer, multiple attorneys on our team collaborate together so that you get the best service available.

Daytona Beach

Located in One Daytona, across from the Daytona International Speedway our Daytona Beach office is comfortable, safe, and easy to access.


Nestled into the vibrant downtown Deland community, our DeLand office is walking distance from the Volusia County Courthouse. This smaller satellite office is ideally located in DeLand.

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