Keep Your Business Safe from Costly Lawsuits
For better or worse, America is a litigious society, which is why owners of SMEs should pay special attention to liability insurance. Protecting your company from lawsuits takes many forms, including reducing or minimizing the risk from the following categories. How to Keep Your Business Safe from Costly Lawsuits:
General Liability: General liability is the risk associated with normal business operations other than auto, aviation, or employee injuries. Keeping a safe, secure environment for customers and employees is one of the most important aspects to reducing general liability lawsuits.
Extended Liability: Extended liability may take many different forms – from air pollution to personal injury lawsuits arising from negligence. Make a priority of staying informed about legal and regulatory-related considerations, including labor relations, environmental considerations, and safety regulations.
Other Liability: A business may also incur financial responsibility related to the use of a car or other vehicle during business operations, as well as damage to the property of others while on your premises. Defective product coverage is another important category to keep in mind. Remember, it can be costly to defend yourself, even if the lawsuit is later dismissed.
Catastrophic Coverage: It may be all but impossible to insure against every known risk, so many small business owners opt to purchase additional liability coverage in the form of an umbrella policy. An umbrella policy is a form of catastrophic insurance that provides excess insurance above and beyond regular insurance policies.