Right now, many business owners are fearful of their future given the financial crisis COVID-19 has put the economy in. In addition to keeping afloat, they also are battling legal issues as a result of the choices they made or failed to make.
Now more than ever, business owners need legal guidance. And we’re here to help.
As COVID-19 continues to derail daily life and business operations, it is likely that many companies will not be able to meet contractual obligations.
In many contracts, there is a force majeure provision, which allows the company to suspend obligations under certain circumstances which make performance impractical or impossible. While it would seem global pandemic should qualify under these terms, you may need to reevaluate your contracts to see.
If you are unsure if your contracts would follow the force majeure clause, contact a business litigation attorney who can review the language with you.
In addition to reviewing the contract language, you should also be communicating with your customers and clients. If you cannot supply the agreed-upon materials, be sure to communicate that and don’t let the communication end there. Keep in mind that once this passes, you want these individuals and organizations to renew their contracts with you.
It’s also important that this is written communication so that if there is a legal issue, you have done your due diligence to inform your customers.
However, some contracts do not have a force majeure clause–but that does not mean you do not have options. The Uniform Commercial Code has similar guidelines regarding sellers of goods.
If you have questions if the code applies to you in your state, contact our team today.
Businesses are doing everything they can to protect the individuals they employ and serve. But even when following COVID-19 guidelines, lawsuits for liability are bound to occur. As a business owner in operation during COVID-19, what can you do to protect yourself?
One such action you can take is to review your insurance policies as there may be stipulations on claims made periods. If you have or think you may face claims due to COVID-19, you need to review how your policy is written as this may become problematic for you when it comes time to renew.
Other Insurance Issues to Consider
Right now, you may be looking at your income and costs and wonder if there is any way to protect your business from catastrophe as COVID-19 continues to plague our nation.
You will want to look at all of your insurance policies you may hold, specifically as it relates to:
- Business Interruption Coverage
- General Liability Coverage
- Workers’ Compensation Coverage
- Directors and Officers Coverage
While right now, your insurance provider probably does not have a COVID-19 policy specific set of guidelines, if your policy is broad enough, COVID-19 may factor in.
It is important to remember that as the policyholder paying into it, you are entitled to that coverage. If you have questions on what is or is not included, don’t hesitate to reach out to us. Our nationwide attorneys can tackle your business litigation questions.
I’m a business owner facing lawsuits because of COVID-19. I need help.
If you are a business owner and you are in the midst of litigation or know you soon will be, contact us. We know that during these uncertain times, your rights may be taken advantage of. We will not let that happen. Contact us today, we are working with lawyers all over the country to provide you the best legal services.