Understanding Liability in Injury Claims
Personal liability happens when one person is legally responsible for someone else’s injury or damage. If you sue someone for a personal injury, you can ask for money to pay for medical bills, lost wages, pain, and property damage. The person may have insurance, but their personal assets could also be at risk.
Key Takeaways
- Suing a business often leads to higher compensation than suing an individual. Businesses usually carry multiple insurance policies, like general liability and professional liability, while individuals often have limited personal coverage.
- Business liability and personal liability are not the same. Personal liability applies when one person causes harm, while business liability covers injuries tied to business activities, employees, or business property.
- Businesses typically have broader insurance coverage. Policies may include general liability insurance (covers bodily injury or property damage), professional liability insurance (errors and omissions), workers’ compensation insurance, commercial property insurance, and a business owner’s policy (BOP).
- Tennessee law protects most business owners through the “corporate veil.” If a business is an LLC or corporation, owners usually are not personally responsible unless they commit fraud or serious wrongdoing.
- Who you sue affects your payout, timeline, and collection process. Business claims often move faster through insurance companies and may result in larger settlements, while personal lawsuits may be limited by lower policy limits.
What is Business Liability?
Business liability applies when a business causes injury or property damage. This includes accidents at the business property, unsafe stores, or mistakes made by employees or professionals. When you sue a business, the company uses its insurance policies and assets to cover the claim. This could include general liability, professional liability, or commercial property insurance.
Key Differences: Business Liability vs. Personal Liability
Scope of Coverage
- Personal liability covers accidents caused by an individual.
- Business liability covers injuries or damage related to business activities.
Businesses face bigger risks, and they often hold more than one type of insurance. This can include errors and omissions insurance, workers’ compensation insurance, and a business owner’s policy (BOP). Individual people usually don’t carry this much insurance.
Insurance Types Involved
Businesses in Memphis often have:
- General liability insurance (covers for accidents, bodily injury or property damage)
- Professional liability insurance for mistakes in services (like giving bad advice)
- BOP policies that bundle liability and property coverage
- Workers compensation insurance for employee injuries
- Commercial property insurance for business buildings and equipment
When suing a person, their personal liability insurance (like home or auto) may apply. However, its limits are usually lower than business insurance.
Financial Responsibility
Suing a business often means you’re more likely to recover more money:
- A common business may have high insurance limits and assets.
- An individual might have limited funds or basic insurance.
In Tennessee, most business owners are protected from personal liability if they form an LLC or corporation. You can’t usually sue them personally unless they commit fraud or misuse the business. That legal protection is called the corporate veil.
Legal Considerations in Memphis Injury Claims
Filing Against an Individual
When suing a person:
- You name them directly in your claim.
- You show they were careless or caused harm.
- Their personal insurance may cover the damages.
Filing Against a Business
When suing a business:
- You must name the right legal entity (LLC, corporation, etc.)
- You claim the business caused harm through negligence, poor service, or unsafe conditions.
- The company’s business insurance will likely pay the claim.
- Local Memphis courts will follow Tennessee law.
If the business is an LLC or corporation, the owner is usually not personally responsible. This is true unless they acted badly or broke the law. This is known as piercing the corporate veil.
The Role of Commercial and Professional Liability Insurance
If a business causes harm, insurance can help cover the damages. This includes general liability, professional liability, and business owner’s policies. These often include:
- Bodily injuries and property damage
- Mistakes in services (covered by errors and omissions insurance)
- Business equipment or buildings (covered by commercial property insurance)
This gives injured people more ways to protect your business or recover losses. This is better than suing someone with just basic personal insurance.
How Compensation May Differ
Damages Available in Business vs. Personal Lawsuits
In both types of claims, you can ask for:
- Medical costs
- Lost income
- Pain and suffering
- Repairs for damaged property
But both large and small business claims can lead to higher payouts. That’s because all types of businesses often have larger insurance policies than individuals, especially when covered under general liability and professional liability plans.
Impact of Insurance on Settlements
When suing a business:
- They often respond faster through an insurance company.
- They may offer a settlement to avoid going to court.
- Their types of liability insurance make it easier to get full payment.
In personal lawsuits, the person’s limited insurance may reduce how much you get even if you win.
Protecting Yourself After an Injury
Why It Matters Who You Sue
Who you sue affects:
- The amount you might win
- How long the case takes
- How hard it is to collect payment
Businesses usually have more insurance, more money, and better protection. With the right legal help, you can file against the right people. This could be the business, the individual, or both, depending on your case.
Working with an Experienced Memphis Injury Attorney
At Alders & Lewellyn, we help you understand your options. We can:
- Find out who’s responsible
- Review the business insurance involved
- See if a business owner can be held personally liable
- Build a strong case under Tennessee law
- Work toward the best possible outcome for you
Final Thoughts on Liability and Injury Claims
Knowing the difference between business liabilities and personal liability is important. Each has its own rules, protections, and types of insurance.
In Memphis, businesses often carry multiple insurance policies like general liability, BOP, and professional service protection. This can lead to bigger settlements or verdicts. But every case is different.
If you’ve been hurt and are unsure whether to sue a business or an individual, talk to the legal team at Alders & Lewellyn. We’re here to guide you, explain your options, and fight to get the compensation you deserve.
