Insurance mitigates financial risks. Individuals may obtain multiple forms of insurance, including life insurance, automobile insurance, homeowners insurance, health insurance, and liability insurance.
Businesses and brands also need insurance. Insurance covers expenses from unforeseen or unfortunate events. Although it’s common to think about obtaining health insurance and property insurance, businesses and brands should invest in liability insurance for several reasons, including those explored here.
What is liability insurance?
Public liability insurance covers expenses incurred from lawsuits stemming from property damage or personal injuries. This insurance pays the cost of legal fees and settlements if you or an employee are found legally responsible for causing damage or injuries. Businesses and brands can use a liability insurance tool to compare insurance packages. The tool prompts users to input critical information, including their occupation, how many employees your business employs, your company’s annual revenue, your location, and contact information. Once you provide all of the requested information, the tool presents information about policy options you can compare. Policy information includes the cost of the policy and the coverage limits.
Why does a business or brand need liability insurance?
Multiple issues can cause property damage and bodily injury that could lead to a lawsuit. For example, you may send a staff member to pick up supplies, and they may end up in a car accident. Even if the accident wasn’t their fault, your company could be sued by another party affected by accident. Without liability insurance, you’ll have to come up with the funds to cover the legal fees incurred while fighting the lawsuit. Legal fees are high and could jeopardize your business’s financial health and ability to cover operating costs.
Incurring high legal fees can cause stress, which could jeopardize your health. Over time, prolonged stress can lead to high blood pressure, heart disease, and mental health issues, such as depression. Fighting a lawsuit is stressful even if you have coverage, but liability insurance will reduce the amount of stress you experience due to legal issues.
A brand refers to a specific product produced by a company or a person who’s created a brand for their sole proprietorship. Artists, such as authors, illustrators, and musicians, are encouraged to develop their brands. Their brand distinguishes their work and promotes their content. Like large companies, individuals with a brand can be sued. For example, if a musician hosts a free concert and doesn’t ensure the venue for the concert is safe or follows capacity restrictions, an individual hurt due to overcrowding at the concert could sue the musician. Without liability insurance, artists may face bankruptcy or spend months addressing legal issues instead of generating an income.
What happens when a person’s injured or suffers property damage and wants to sue?
An individual who’s affected by property damage or bodily injury may opt to file a lawsuit. For example, someone who’s injured in a car accident may Google “Paul Wilkinson Denver injury lawyer” to access contact information for a personal injury attorney in their area. Personal injury lawyers, such as Wilkinson, represent clients injured in accidents, such as car accidents, bike accidents, and pedestrian accidents. Potential clients receive a free consultation, ensuring clients find a personal injury lawyer they’re comfortable with.
Personal injury attorneys spend years earning an undergraduate degree and their law degree before taking the bar exam. Once they pass the bar exam, they’re qualified to practice law. Personal injury attorneys use their skills and knowledge to advise their clients. They prepare legal cases for their clients and negotiate with the parties they hold liable for their client’s injuries or the liable party’s insurance company. If the case goes to trial, the personal injury attorney presents the court case. Their role may include questioning witnesses, presenting statements in court, and summoning witnesses to testify.
Businesses and brands need liability insurance to protect their company’s financial health. Liability insurance covers the costs of legal fees and settlements if the business or brand is sued by a person who suffers property damage or bodily injury due to the actions or negligence of the business or brand.