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HomeBusiness StrategiesSmall BusinessWhat are the underlying costs of negligence to business?

What are the underlying costs of negligence to business?

Running a business carries a number of risks. Things can and sometimes do go wrong, including workplace related accidents.

If a member of the public, or one of your employees, have been injured as a result of an accident or injury, it could result in a case being brought against the business. Not only do negligence claims result in financial losses, but they can also have other underlying costs too.

Here, we’ll look at some of the main underlying costs of negligence to businesses.

Damaging your reputation

One of the biggest underlying costs of negligence in business is the damage it can cause to your reputation. In some cases, negligence can be publicised, which would put your business name out there for all of the wrong reasons. Thousands, if not millions of potential customers could be put off from using your products or services if you have gained negative media attention.

Even if the negligence isn’t publicised, word of mouth can still cause your reputation to take a big hit. Depending upon the type of negligence you’ve been found guilty of and the consequences it had, it could even potentially put you out of business.

Worker wellbeing and happiness

If an employee was injured in the workplace, it could ultimately impact the wellbeing and happiness of your other employees too. The people who work for you need to know that they are working within a safe environment. If a negligence claim is brought against you by an employee, it’s going to have a negative impact on morale.

If word of mouth does get out, it could also cause issues for you later on when it comes time to hire additional employees. This could leave you with a talent gap, or at least see the quality of applicants drop.

Seeking help for negligence claims

The potential damage professional negligence claims can cause to your business is significant. Therefore, the way in which you handle it will make a big difference to the outcome.

Firstly, you should ensure you’re seeking help from a professional negligence solicitor. You’ll also want to communicate with either the employee or member of the public, to show you will do everything you can to resolve the issue.

The better you handle the claim, the less of an impact it will have on the business. Mistakes do happen and as long as you admit responsibility and do something to make up for the problem, your reputation could still be saved.

Overall, negligence can have a lot of underlying costs you might not have considered. While avoiding negligence is always the best course of action, if something does go wrong then how you handle it will make a big difference to the impact it has on your company.

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