What took years to earn can take moments to lose without liability insurance.
We have all heard of the person who slips in a store and sues the chain for millions. Who can forget the lawsuit for spilled McDonald's coffee? Americans are the most litigious people on the planet, and if you run a business without insurance then you risk of losing everything in a single judgment or settlement.
Who to be Protected From?
American courts are packed with costly lawsuits.
In regards to American litigation risks, you need to be protected from literally every breathing human being with whom you may have the most infrequent dealings. This includes the public, competitors, government agencies, action groups, customers, and even your own employees and investors.
How Costly is a Case Without Insurance?
Regardless of outcome, an uninsured entity will lose.
A defense, absent of insurance coverage, can cost millions of dollars, even if you win the case. Never depend on the loser paying you back; this seldom actually occurs. Regardless of whether you are successful in the case, you still lose considerable amounts of money in the process. Insurance covers this.
What Types of Insurance Are There.
Insurance packages are numerous.
In the industry of commercial liability insurance, there are a plethora of packages that cover specific liability topics. It is important for you to review and decide, based on what you can afford, what coverage is most important and what is least important to you and your business. Areas or incidents where you are most likely to be sued should take priority.
Who Should be Covered?
Insurance won't cover the expense of bad press.
Most lawsuits charge not only the company but its owners, officers, executives and managers individually. At a minimum, insurance should cover the company, its owners, officers, investors, executives, and managers as a group and individually.
Where do I Get Insurance?
There are hundreds of commercial insurance companies bases in the United States and Canada that have excellent records for aggressive and appropriate protection. The key is how much you want to spend. The Small Business Administration (SBA) has personnel who can assist you with developing a coverage plan and can provide you with a list of companies.
