Due to the COVID-19 pandemic, management of US companies face various liability risks, including health and safety of employees and other individuals along with compliance with continuing contractual obligations. Concerning individual liability risks, management may face claims by employees suffering illness or other negative effects to their health due to insufficient policies or measures for protection from COVID-19.
If a claimant can prove management knowingly disregarded the health of individuals, the company as well as members of management may be responsible for damages.
Moreover, management may be threatened due to liability risks arising from ongoing contractual obligations, such as performing services and delivering products. If the company is part of a supply chain, failure to comply with contractual obligations may result in severe damages to various entities. While the scope of damages and exemptions will have to be determined on a case by case basis, halting operations without coordination with customers and vendors may have dire consequences for a company.