Multi-million dollar lawsuits – can it happen to your business?
If you own a business, you are undoubtedly exposed to numerous liabilities during the course of your regular business day.
In this litigious society, businesses should take active steps to protect their reputation and finances. Fortunately, with a firm business policy and business insurance in tow, companies can do just that.
While many business owners fear no lawsuits because they have a bare-bone insurance plan in place, costly lawsuits can still happen. Here are just a few examples of possible lawsuits and their extent:
- Slip-and-fall cases that go to trial can have judgments in excess of $100,000.
- Commercial vehicle accidents have an average judgment of over $24,000. A fatality can bring a judgment over $1 million.
- If a person or their property was damaged due to your product, service, or advice, they can sue your company for all it’s worth.
Luckily, there are steps to protect yourself from liability lawsuits:
- Contact an insurance agency with a quality umbrella or liability insurance. These policies can provide sufficient coverage for your business’s risks and threats. If you deal in a particularly ‘risky’ industry, such as construction or driving a vehicle, then your business will need more liability protection.
- Read the fine print and understand the details of each policy. Never choose a policy based solely on the bottom-line cost. Many less expensive policies won’t cover items such as attorney feeds, PR firm engagement, or witness fees. Should this be the case, an umbrella liability policy may be the optimal choice as it offers higher limits than the typical policy.
- Always choose a policy based on a worst-case scenario. In the case of severe lawsuits, the judgment may reach into the tens of millions of dollars. Your coverage limits should always exceed this amount to cover attorney’s fees or other financial charges.
- Protect your business before an incident occurs. Do a safety check of your business’ workplace and equipment, getting it evaluated by a safety expert, if possible. Always take preventative measurements to ensure that no one is hurt by the means of your business activities.
With lawsuits (multi-million dollar!) on the rise, it’s increasingly important to invest some time in finding an insurance policy to protect their assets. Whether you operate a small or large business, be sure to protect it! Contact Chambers & Company Insurance Brokers, as our expert agents know the risks of each business!