When might personal injury claims affect tech startups?

There are many things to consider when setting up a tech startup. From software to office use and design, plus having a sound business plan in place, the to-do list is likely to be long in the early stages.

However, as well as the everyday essentials that come with launching a business, plus the sector-specific details that come with setting up a tech company, there are also external factors that can be worth considering.

One example of this is a personal injury claim made by an employee or client. This can be costly and difficult to navigate, especially if you’ve not encountered this type of issue before.

To help you manage this potential hurdle, here are some examples of different instances where tech startups may be affected by personal injury claims.

Product liability

If a tech startup develops and sells physical products, such as hardware devices or gadgets, there is a potential risk to users. This is because these are actual products that could cause harm or injury.

For instance, if a malfunctioning device causes burns or electrical shock to a customer, the injured party may sue the startup for damages. In this case, the company could face personal injury claims.

Software malfunctions

As well as physical harm caused by a tangible product, there can be issues around misinformation caused by software created by a tech startup. These businesses that offer software applications or digital services might face personal injury claims if their software malfunctions or contains critical bugs that lead to injuries.

For example, a glitch in a healthcare app might provide incorrect medical advice. If a user follows the advice and is injured as a result, the company behind the app could be liable.

Workplace accidents

Personal injury claims can also arise from workplace accidents within the startup's office or facilities. If an employee or visitor is injured due to unsafe conditions or negligence, they may seek compensation through a personal injury lawsuit.

For instance, someone might slip, trip, or fall. Or they might bump their head on a window or shelf.

Cybersecurity breaches

Startups that handle sensitive user data may face personal injury claims if their cybersecurity is compromised, leading to identity theft, financial losses, or other forms of harm to customers.

One major example of this where the startup could face a personal injury claim is where the breach has caused the person affected to develop anxiety. This falls under ‘general damages’, and the person could be entitled to compensation.