Liabilities in your business equal cost risks. That's because your actions could cause someone else a personal loss. That personal loss could thus equal time and money lost as well. If the affected party feels they did not deserve these extra costs, they might hold your business responsible. They might even decide to sue you to force you to cover their personal losses (and more). What can you do to respond?

If you have a business liability insurance policy, you might be in luck. Policies generally can help you out because they apply to your legal duties to others.

The Legal Risks Of Liabilities

Picture a situation where a display case in your business falls over and lands on a customer below it. That person might sustain significant injuries and might need ongoing medical attention. As a result, they could lose income and various aspects of their personal life could suffer.

The affected party might hold you responsible for their losses. They might even allege that your actions (or inaction) caused the unsafe conditions that led to the collapse. As a result, they might decide to sue you for their losses. That is because your> falling cabinet was a liability that harmed them.

To the business, this action might equal a crisis. It could signal lost time, expensive settlements and mounting legal fees. The costs could prove steep. But, if you have commercial liability insurance, you might have help available.

General Liability Insurance Legal Assistance

Business liability insurance can help businesses repay others. It can apply for the costs those parties might sustain through damage you cause them. So, in the case that you have a client get hurt, and then sue your business, coverage might be able to help you.

The coverage might help you cover the costs this person can prove they sustained because of the accident. So, it might help you pay for the affected party's medical bills, rehab costs or lost income. Keep in mind, even if you did nothing to trigger the accident, you might still have to pay.

Also, if the case results in a lawsuit, then you might be able to get help with a variety of legal costs. In most cases, your policy can pay for settlements or other penalties ordered by the court. Also, it might provide you help covering your own legal bills.

Keep in mind, certain exclusions in what the policy covers might exist. Therefore, you might still face some challenges out of your own pocket. Nevertheless, with coverage, you can often reduce your personal cost burdens.

General liability policies might only cover the property damage or injuries of others. However, there are other business liability policies that might cover other costs (such as data losses) that harm customers. If you need any clarification or help creating the right policy, speak to your Consolidated Insurance Markets agent about your needs.

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