New business owners might not worry about insurance right away as this seems like an added expense they just don’t need. However, failing to have insurance for their business can have disastrous effects. Business owners need to ensure they have adequate insurance for their business to avoid having to close because of a lawsuit.
Slip and Fall Accident
Employees or customers can easily slip and fall inside a building and be seriously injured as a result. The medical bills alone can be in the thousands of dollars and, if the business is found liable, they will need to pay this plus other compensation to the injured person. Dealing with even a minor slip and fall can be costly as the business will need to hire a lawyer and will likely need to pay a settlement if they’re at fault.
Businesses that rely on company vehicles are going to need to ensure they have adequate insurance for their vehicles. Vehicle accidents can be incredibly costly, especially if the driver for the business is at fault in the accident. Even if they are not at fault, there may be an expense to prove this in court so they can be compensated for the driver’s injuries and the damage to the vehicle.
Contracts need to be followed exactly. When this doesn’t happen because of an issue with the business or who they’re contracted with, a lawsuit might be required to resolve this issue. This is going to be costly no matter what the outcome is for the business and no matter who is at fault for failing to adhere to the contract.
Product Liability Suits
Although product liability suits are generally geared toward the manufacturer of a product, this could be the business and they could be held liable for a product they didn’t make but exclusively carry if people are injured by the product. They may at least be named in the lawsuit and will need to hire a lawyer to demonstrate they are not liable for the injuries caused by the product.
These are just a few of the most common lawsuits a business might encounter and they can happen from the first day the business is open. Take the time now to learn more about why you must have commerical insurance to ensure your business is protected from anything that could happen.