Monday, November 10, 2008

Liability Insurance could save your business from financial disaster by James Cochran

0
votes
vote
Company liability insurance safeguards businesses from various allegations of negligence, but it may also protect them from having to absorb the fees associated with defending a frivolous lawsuit.
While attention to quality control and seamless risk management procedures can reduce the risk of lawsuits, no organization can completely eliminate the possibility that a claim will arise. Litigations, even the most ludicrous pursuits, can lead a company down a path of financial disaster.
Businesses can prevent this financial pitfall by arming themselves with company liability insurance. In fact, operating a business without coverage, particularly in the information technology industry, can create a highly volatile situation for the organization. Still many businesses and individuals go without liability insurance to cut down on operating costs, but it only takes one claim to wipe out what took years to build. Without liability insurance, the business can take a major hit from the litigation process and the owner's personal assets can become vulnerable.
In 2007 alone, according to the Bureau of Labor Statistics, there were more than 335,000 cases of employees injured on the job due to contact with objects and equipment. Employer's Liability insurance protects companies from an employee's claim that their illness or injury was caused by the company's alleged negligence or failure to provide a safe workplace. This coverage will not only pay for damages resulting from a lawsuit, but also for the defense costs including, attorney fees, research fees, court reporting fees and witness fees, to name a few. In some instances, legal defense costs can substantially surpass the actual damages.
General Liability insurance is typically the first line of defense against common claims. It protects businesses against claims of bodily or other physical injury as well as property damage. A General Liability insurance policy will most likely include:
* Personal and Advertising Injury - protects against offenses committed by the company or employee such as libel, slander, disparagement or copyright infringement in advertisements.
* Defense Costs - covers legal defense costs for liability claims regardless of who is at fault.
* Medical Expenses - covers medical expenses if someone is injured due to an accident on the business's property.
* Premises and Operations Liability - covers the business on claims of bodily injury and property damage inflicted by others on the business's property or as a result of the business's operations.
Premiums on General Liability insurance are typically low, and usually are not enough to dissuade a business from purchasing it. The cost, however, of operating without liability insurance can prove to be much more extreme. Legal fees alone, regardless of whether the claim is deemed valid or not, can damage a company financially. Company liability insurance can preserve a business's assets and allow them to continue operations even during a lawsuit.
About the Author
James Cochran is the founder of Techinsurance, which has been providing high quality business liability insurance at a reasonable price to IT firms across the nation since 1997. They quickly became a leader in the online insurance industry, and have since maintained their position as one of the top IT insurance providers
Your Ad on 100's of Engines$4 per Month or less
Discounted Insurance Rates
Compare rates for auto, life, and health insurance. Find out who has the best benefits and more.
Arizona Insurance Quotes Now !
Make local Arizona companies earn your business with only 1 applicaiton
Your Life Insurance Suck?
Free Quotes - Lowest Premiums Anywhere. Hundreds of Local and National companies to choose
Auto Insurance Quotes
The best auto insurance quotes from the top companies in the USA
Car Insurance Quotes
Get a free quote and start saving today
Lowest Car Insurance
Lowest car insurance quotes from the top companies
Car Insurance Quotes
Free auto insurance quotes from agents in any state. Multi-policy discounts available.
Free home insurance quotes
The insurance you need at prices you'll like
Insurance showdown. All states
The insurance you need at prices you'll like
Free life insurance quotes
The insurance you need at prices you'll like
Bookmark this article:
DropJack! del.icio.us Furl Technorati Blinklist Reddit Mister Wong Everywhere Else

No comments: