Blog Archive July 2020

As the restrictive phases of the Coronavirus Pandemic progress, businesses are left to wonder how to handle the ramifications of reopening in the safest manner possible. It is a business owner’s responsibility to take preventative and continuous measures to ensure the safest conditions can be guaranteed at all times for customers and employees.

However, this duty is more difficult than it has ever been with the onslaught of the coronavirus. Attempting to avoid the transmission of the coronavirus is a tedious and laborious endeavor that requires much added time and effort to maintain added cleanliness and sanitation. Information regarding the virus’ possible manner of transmission often changes as new developments are discovered. As these developments alter our understanding of the virus, so do the needs of the procedures that must be in place to protect the general public. 

Therein lies the question of liability for business owners. To what degree are business owners liable if a customer or employee claims to have contracted COVID-19 at a place of business? There are several scenarios in which this may come about. They may file a claim against the business. Generally, such claims are covered by insurance. If the amount of the claim is less than the deductible on the insurance polcy, the business would be responsible if the claim is valid. Thus, it is imperative to thoroughly read through your current insurance policy from start to finish. While reading, specifically look for how your policy would respond to such claims. 

It will also help to determine if you have an umbrella policy, which would be beneficial if the lawsuit was filed against the individual business owner rather than the business. This might occur if the claimant finds you to be personally liable for not enforcing safety protocols in the running of your business. These types of claims are all worrisome, but fortunately there are steps you can take to reduce your liability and the chances of having a claim filed against you.  

First and foremost, review your insurance policies with an insurance profession. Determine where you stand if you were to be sued at this point. If you are up for renewal, be cautious that a new policy may have newly added clauses tailored explicitly for these pandemic scenarios to avoid payouts. Be sure to ask your insurance provider about coverage for such matters. 

Also very important, be transparent. Have your safety policies and the protocols you are enforcing clearly posted, preferably at the entrance of your business. Include information such as how you regulate social distancing, sanitation measures being taken and any other relevant information. This allows any potential clients the ability to decide before entering if the safety measures you are offering are satisfactory to them. 

Create a logbook or system to register the continuous cleaning protocols enforced and record all updates made to procedures or policies. Regularly update employees regarding COVID safety protocols and have each one sign a document that guarantees their willingness to carry through the procedures. Ensure employees understand the importance of following procedures at all times.

Be prepared for employees or customers that are not willing to follow procedures. File reports with as much detail as possible, including the verbal interaction and actions that unfolded. Should the incident result in a consequence to themselves, yourself or others, the report can protect you by showing your attempt to remove an individual who was not compliant or prevent the consequence that resulted from the incident.

Navigating through this new and unprecedented manner of doing business is intimidating. Continuously educating oneself with the most current information and taking the right precautions will ensure the least liability for any situation that may present itself in your place of business.