A business''s purpose is to serve its customers, and that means taking risks sometimes. One of these risks is losing money in lawsuits, which could be filed by employees, customers, or anyone else who was negatively impacted by the business. Insurance offers protection against these liabilities to a degree; nevertheless, lawsuits will still hurt the business in some way. This text looks at economic damages and its role in insurance claims, lawsuits, and injunctions against businesses. Readers should be able to understand economic damages as an aspect of business liability, outline business risks posed by economic damages, describe key determinants of economic damages, and estimate economic damages and business loss. While this book gives a broad overview of the connection between business liability and economic damages, it could not possibly cover all the issues that can arise; however, it will be of benefit to business owners, managers, students, lawyers, and economists who deal with business liability and liability cases. Chapter 1 offers an explanation of business liability generally. Liabilities are debts or obligations owed to others; in a business context, this can include loans and obligations in business contracts. Sources of business liability include owners, employees, customers, government, the public, and other businesses. The idea of social contracts is also discussed and is defined as an idea or framework that serves to define and limit the rights and responsibilities of society''s members. Insurance as a solution to unexpected liabilities is explained. The insurer has an obligation to the business, and per the social contract, businesses have an obligation to society. Business liability can negatively impact innovation and economic growth, so in the United States, financial liability has been capped for each corporation. The legal aspect of business liabilities is also described, including torts, breach of contract, bench trials, mediation, and arbitration. Most unpaid business liabilities will not go to court but get negotiated, settled via insurance, or quashed in bankruptcy. Examples and exercises are also given.