tort
Definition
A tort is a wrongful act that one person commits against another that causes harm, and the law allows the injured person to sue for money to compensate for that harm. Unlike a crime where the government prosecutes someone, a tort is a private legal dispute between two parties. Common torts include negligence, defamation, and trespassing.
Example
If a customer slips on a wet floor in your store because you forgot to put out a warning sign, they could file a tort claim against you seeking payment for their medical bills and lost wages.
Watch Out
As a business owner, you can be held responsible for torts committed by your employees while they are doing their jobs, so having solid liability insurance is essential.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.