Public liability insurance protects companies from potential lawsuits by the public. Without this insurance, businesses would incur the legal expenses and settlement costs of a lawsuit directly.
Approximately nine out of every ten businesses are dealing with a lawsuit at any time, making it crucial for all businesses to have public liability insurance. Let's examine how liability insurance works and how your business benefits from investing in this type of insurance.
Companies can be sued for multiple reasons.
All companies have public exposure. This means that they interact with the public in some capacity. A business may have consumers coming in and out of their shop on an hourly basis or send staff to clients' homes to perform tasks. Businesses may have staff driving to restaurants for work meetings or picking up supplies from other vendors. These are all examples of public exposure.
Suppose an employee is in a motor vehicle accident in a business vehicle. Other parties may be affected by that accident in multiple ways. Their car could be destroyed, and they could file a lawsuit for property damage. If a person died in the accident, their family members could sue for wrongful death. A person injured in the accident could opt to Google "Denver truck accident lawyer" to find a local personal injury lawyer. Personal injury lawyers are highly trained legal experts who represent clients who've been injured in accidents. Personal injury attorneys advise their clients, gather relevant data to support their clients' lawsuits, file legal paperwork, and present cases at trial. They may also negotiate settlements with insurance companies or the party being sued.
Personal injury lawyers typically offer free consultations to potential clients, ensuring anyone affected by an accident has the opportunity to consider hiring a lawyer to sue the responsible party. If your employee is considered the responsible party, your company may be sued. If negligence contributed to the truck accident and a person suffered severe injuries, the chances your company will be sued increase.
Public liability insurance covers the immediate and long-term costs of a lawsuit.
Public liability insurance covers the legal fees your business incurs when it's sued. Your legal team must review the claims made by the party filing the suit. They must also talk to witnesses and review documentation, such as police reports, that could be used to build your company's defense. Your legal team may also interview witnesses and search for additional evidence that could mitigate your liability. Legal fees are expensive, and if the case goes to trial, the legal costs will be excessive.
Incurring the total cost of legal fees for a trial and paying settlement costs to the party filing the suit can be excessive. Public liability insurance covers these costs and pays the settlement amount to the plaintiff, provided the settlement is within your insurance plan's maximum payout. Since injured parties can sue for severe bodily injury and seek compensation for their medical bills, pain and suffering, and punitive damages, some companies may be ordered to pay more than their insurance policy covers. The high legal costs and risk of out-of-pocket costs may prompt your company to settle suits out of court.
Obtaining liability insurance is straightforward.
You can review public liability insurance policies through an online tool enabling you to review multiple policies simultaneously. The tool prompts you to enter important information, such as your location and type of business. Once you've entered all relevant data, the insurance policy comparison tool generates a list of insurance companies in your area with public liability insurance policies. You can review the rates and policy limits to determine which policy serves your company's needs. You also receive contact information, ensuring you can discuss your insurance needs with an insurance expert and ask questions about their policies. Many insurance companies offer discounts to clients who bundle their insurance plans, making it possible to reduce your liability insurance plan costs if you use the same insurance company for your automobile insurance and other insurance policies.
Public liability insurance pays for the legal fees and settlement costs stemming from incidents involving the public. Your liability insurance plan protects you from incurring the total legal costs and settlement fees.