Liability claim from falling objects

Liability claim from falling objects

To identify whether there is a liability claim against the company for the injury 
caused to its employee by a falling object.

 Overview of falling object scenarios
 Determining whether the company is required to record a liability for this incident
 When?
 For what amount?
 Disclosures required
 My opinion about the case

On January 31, an improperly stacked box fell from the top shelf of a warehouse, injuring an employee. The employee was hit, fell, and broke his wrist. Your company self-insures for the risk of such incidents rather than paying an insurance company to absorb the risk of such claims. The employee has been treated for his injuries and has retained a lawyer. The lawyer has not yet filed a formal claim with the company. According to your internal risk management team, the amount of claim likely to be sought by the employee could range between $50,000 and $300,000. Is your company required to record a liability for this incident? When, and for what amount? What disclosures are required, if any? Provide an explanation of your position and the authority for it.


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