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What is Corporate Negligence?

Negligence lawsuits can be costly for businesses and corporations. Companies that are found negligent can be liable for damages, including financial damages, punitive damages in some instances and additional types of damages depending on the circumstances.

In general, a corporation that fails to exercise reasonable care, as defined, generally, by industry standards, and injures someone can be liable to the harm caused. Concerning corporate negligence, the corporation will generally not be sued for the negligent behavior of members of the corporation but can face liability if the claimed negligence is part of a corporate policy or corporate practice. It is not necessary for the practice to be written down for the company to be liable. In contrast, however, if an individual is negligent, and depending on the circumstances, the individual may be liable rather than the corporation for the harm caused.

Defending against negligence claims varies given the circumstances. Companies may demonstrate that there was no negligence or that there was no corporate negligence. In addition, if the company utilizes written policies that are designed to ensure the safety of customers, conducts frequent training sessions concerning proper practices or demonstrates that the harm could not have been anticipated, all these considerations can serve as evidence that the company was not negligent.

Negligence laws are an important resource and remedy for victims who have suffered harm because of the careless behavior of others, including corporations. When a company is accused of corporate negligence however, it is important for it to be familiar with options and responses available to it to defend and protect the company when necessary.

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