Protecting Your Business from Employee and Customer Lawsuits

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As a business owner, financial success hinges on you keeping your business’ future financial stability in mind. In today’s climate where customers sue companies for not providing very obvious warnings that coffee is hot and carpet adhesive is flammable, all businesses can benefit from liability insurance.

What is Liability Insurance?

Liability insurance is a type of business insurance that can help your business pay for any medical expenses, attorney fees and damages due to accidents on your premises, due to your operations, or because of your advertisements. Liability insurance will cover both out-of-court settlements and court judgments.

Why is Liability Insurance Vital?

Liability insurance will protect your business from unexpected financial strain caused by liability lawsuits, whether or not you are found to be at fault by the courts. For example, providers of business insurance in Dallas take into account that state liability law does not always protect businesses from frivolous lawsuits. There is no reason that your claim should be denied because the Texas court system has ruled that your employee did not clean up a spill on the floor fast enough. The same is true throughout the U.S.

What Kind of Liability Insurance Do You Need?

As a business there are different types of liability insurance available to you.

  • Product Coverage: Protects against lawsuits that result from consumer injuries when using your product.
  • Employment Practices: Protects your company, managers, and employees from unfair employment practice claims like sexual harassment or biased hiring practices.
  • Professional Liability Insurance: Professional mistakes that lead to a breach of contract or other lawsuits.

About the Author

Allen Grove is an advocate for improving the Texas liability court system. He believes that small business owners should not need to fear that they will lose their business over frivolous lawsuits.

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