Owning a business makes you a person who is responsible for the happiness and well-being of your employees and your customers. Instead of the punishment being a disgruntled individual, you could easily find yourself on the receiving end of a lawsuit.
The goal is to avoid lawsuits altogether, but there are various ways in which you can at least safeguard yourself from financial ruin due to a lawsuit gone wrong. Check out some common lawsuits faced by business owners, and take the necessary steps to protect your organization from any detrimental effects.
Protection for injured workers
As the owner of your operation, you have to take responsibility for the safety of your employees. It may seem simple to see the danger present when working with chemicals or large machinery, but there are plenty of office-related injuries to avoid as well.
If one of your employees does happen to be hurt on your watch, you’ll be legally liable to pay them workers’ compensation benefits. If you’re caught without a valid policy, you could be in a world of hurt, financially speaking.
Errors and omissions can hurt
Though your professionals may not intend to cause your business trouble, neglecting to give the consumer the full inside scoop regarding a purchase can get you into some sketchy legal battles.
Acquiring a well-suited professional liability insurance policy will protect your operation against financial penalties, should something go wrong.
Protect your physical property
Property insurance is important for protecting your physical assets of the business. Especially useful for brick and mortar establishments, property insurance is an absolute must.
One point to remember is that property insurance doesn’t usually provide coverage for flood damage. Make sure you have another policy in place to secure your business operation in this way.
General liability is a good idea
General liability is the insurance coverage you’ll need to avoid a slip and fall lawsuit. If one of your employees doesn’t place a “Wet Floor” sign down after mopping and someone slips, your business will be liable for the financial impact of a personal injury lawsuit.
Your general liability insurance policy will help offset the cost of medical treatments and lost wages for the person who was allegedly injured on your organization’s property.
Commercial auto insurance
You may run a business that requires some of your employees to drive a vehicle. If that is the case, then you need to have commercial auto insurance. Not only is this particular policy required by law, but you want it.
The cost of replacing your company vehicle, any vehicle it damaged, and any medical costs resulting from an accident could overwhelm your business finances.