What are the major types of business liabilities?
Business liabilities are legal obligations that businesses owe to others. In Kansas, these may be held by an individual, a company, or a public entity. Generally speaking, the main types of business liabilities are debts, contracts, and tort claims. Debts are a type of liability that arises when a business fails to pay money it owes. This can include debts owed to employees, creditors, vendors, and government entities. Contracts are another form of business liability. This arises when one party breaches the agreement put forth in a contract. This can come in many forms, such as failing to deliver goods or services, or not paying an agreed-upon amount of money. Tort claims are when a business is liable for any harm it caused to someone else. This could include physical harm, emotional distress, or property damage. Tort claims can also occur for false imprisonment, malicious prosecution, or interference with someone’s contractual relationship, to name a few examples. Lastly, businesses also carry fiduciary liabilities. This is any type of duty that a business has to its shareholders, employees, or customers. This can include duties to use reasonable care, loyalty, or good faith. In Kansas, businesses are liable for any of these obligations should they fail to uphold them. As such, it’s important for businesses to ensure that they are making all payments in a timely manner and that they are abiding by the contracts they have agreed upon. It’s also important that businesses understand their fiduciary duties and take specific steps to fulfill them.
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