Are you being sued? Do you have adequate representation? Businesses on the receiving end of litigation are the real reason we have insurance companies to begin with. What we wanted to know is how these companies afford to defend themselves. How do companies handle lawsuits and is it worth getting insured against them? Let’s talk about lawsuits and how insurance businesses handle them.
Most Business Insurance Lawsuits are covered by Liability Insurance
First things first: public liability insurance is the most generic policy type that all businesses have. Depending on where you live, this may be a legal requirement for you to operate and be given a business license. Public Liability protects you against things employees might do or say to upset customers. It also supports your liability in terms of your product range and whether or not it works like it is supposed to.
If your insurance covers your lawsuit then there are certain steps your insurance provider will take to get you the best deal, or to protect you, depending on your needs.
How Insurance Firms Handle Lawsuits
Providing that the case cannot be solved between you and the adversary, you need to inform your insurance provider as soon as you possibly can. Commonly, they will pay for everything from fees and court costs to paying an indemnity commonly referred to as a settlement. You may find that your insurance premiums rise the following year in response to this. It is also worth remembering that there will be a cap on how much your insurance company will pay out. The cap will be outlined in your policy documents.
The Insurance company will investigate the situation when they receive news of the lawsuit. They will first confirm whether or not you are covered against the particular lawsuit and then they will begin to act. The sooner they are made aware of the problem, the sooner they are able to start working on the solution. Example Talisman Insurance has a reputation for working closely with it’s participants when a lawsuit arises, and looks to appoint fair, knowledgeable, and motivated attorneys who will vigorously defend you.
If specific circumstances leading to the lawsuit, may be excluded under your policy, the insurer may deny your request for representation. This is why it is so important to find an insurer with a good reputation who provides broad coverage and understands the specific coverage needs of your industry. This is also why paying minimal policies is often a sort of false economy. If you get sued by two or three people at once and your yearly cap is exceeded, you will find yourself liable. Similarly, bare bones policies don’t always cover all of the potential scenarios a disgruntled client might have for bringing a lawsuit in the first place.