Experienced Attorney Dedicated To Protecting Client's Interests

Photo of Baker & Associates', office building
  1. Home
  2.  » 
  3. business litigation
  4.  » Report: Coronavirus could cause business disputes long after the outbreak

Report: Coronavirus could cause business disputes long after the outbreak

On Behalf of | Apr 17, 2020 | business litigation

In the first few months of 2020, the world’s primary concern has been COVID-19 – more commonly known as the coronavirus. The widespread virus has devastated several individuals and the U.S. stock market and economy. California declared a state of emergency over the virus on March 4, and issued a stay at home order that has now been extended to at least May 15, 2020.

According to a new report, businesses could experience considerable effects from the virus as well that could leave them facing serious litigation.


Fortune magazine reports that the coronavirus could have a long-lasting impact on businesses even after the outbreak subsides. These impacts could include:

  • Significant disruptions in business;
  • Contract disputes if disruptions affect business proceedings;
  • Disputes over business insurance coverage; and
  • Employee privacy issues.

All of these effects could leave businesses facing a flood of lawsuits.

Many studies have found that it is true that large outbreaks of infectious diseases can have detrimental effects on companies since consumer fears can influence the market. Additionally, large companies and industries are also held to higher standards to protect both the public and their employees in extreme and frightening cases like this.

California business owners must be aware of these potential impacts and risks, so they can:

  1. Plan to manage hazards and incidents in the workplace;
  2. Take proper action to protect their business;
  3. Reduce the effect the virus could have on the business; and
  4. Prevent the risks of these lawsuits before they happen.

Taking these risks seriously and staying ahead of them can help business owners protect their employees and companies, as well as minimize the threat of potential lawsuits in the future.