How Mass Torts Affect Small Businesses

  • March 5, 2024

Being a small business owner isn’t a walk in the park – indeed there are more than a few pitfalls. One of the factors you might not have considered yet are mass torts. Here is a brief understanding of how they can affect your business.

What are Mass Torts?

Mass torts are civil actions that have many plaintiffs involved against one or a few defendants in state or federal court. Often these result from injury, marketing frauds, or financial losses caused due to the actions of corporations or individuals.

Mass Torts and Small Businesses: The Relationship

Small businesses could be the plaintiffs or defendants in mass torts. If they are the defendants, these could lead to substantial financial losses. As plaintiffs, they can receive compensations.

Impact of Mass Torts on Small Business Financials

When a small business is the defendant in a mass tort, it can be costly, with legal fees that can require significant resources. Even if the business wins the suit, they might face reputational damage leading to loss of customers and revenue.

Benefit of Mass Torts

If a small business is a plaintiff, a mass tort can help recover losses suffered due to wrongful actions of larger corporations or institutions.

How to Decrease Liability in Mass Torts

Some ways for small businesses to decrease their liability are:

  • Follow all safety standards and regulations in the industry.
  • Practice proper diligence before engaging with other corporations.
  • Have adequate insurance coverage.


While mass torts can pose risks for small businesses, there are ways to mitigate potential harm. It’s crucial to keep a diligent approach, be aware of legal and industry regulations, and have proper insurance coverage. With the right preparations and proactive measures, small businesses can reduce their exposure to mass torts.


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