The Role of Business Insurance in Protecting Against Legal Claims

In an increasingly litigious world, all businesses and organizations must be mindful of their potential to be sued. Regardless of diligence, safety or responsibility, your company may inevitably face situations in which it faces accusations alleging wrongful actions or responsibility for other parties’ losses. Such lawsuits can arise from many potential sources, including customers, clients, the general public and a business’s own employees.

At My One Stop Insurance Agency in Canutillo, Texas, we understand the importance of a comprehensive approach to various forms of liability insurance. Our team is proud to present guidance on the various types of coverage that could prove invaluable when facing legal claims.

How Different Types of Insurance Can Respond to Lawsuits

There are many types of insurance that may cover various liabilities and subsequent lawsuits. These policies can be invaluable, as even if your business has been falsely accused, you may need the financial aid provided by suitable coverage to set the record straight. Familiarize yourself with the following types of insurance and how each may help respond to certain legal claims:

• General liability insurance may provide financial aid if your business is allegedly at fault for another party’s bodily injuries, property damage or personal and advertising injury.

• Professional liability insurance, also known as errors and omissions insurance, can assist with legal costs and losses if accused of providing improper, incorrect or inadequate professional services or advice.

• Commercial auto insurance can offset losses arising from incidents involving company vehicles for which you or your employees are at fault.

• Cyber liability insurance can assist with costs incurred by lawsuits should affected parties sue your company following a data breach.

• Employer’s liability coverage is often included in workers’ compensation insurance and can help your business manage the ramifications of lawsuits filed by employees who have been injured or fallen ill as a result of their jobs.

• Employment practices liability insurance may financially protect your company from the fiscal consequences of lawsuits alleging improper workplace conduct, such as discrimination or wrongful termination.

• Commercial umbrella insurance can establish emergency coverage for particularly costly lawsuits that may exceed the coverage limits of other policies.

We’re Here to Help

Contact My One Stop Insurance Agency today to learn more about securing sufficient liability coverage for your business or to compare personalized quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.