Starting a business is no small feat. But even after making it through the first hurdle of starting a company which is setting it up and having it lift off, the challenges of running don’t end there.
One of the most significant challenges for small businesses is the rising personal injury claims brought against businesses by their employees, clients, and other persons who suffer harm directly related to the business. According to statistics, the prevalence of personal injury claims has increased by approximately four times since the 1970s.
But, What Drives the Increase in Personal Injury Claim Fillings?
Tort law has remained relatively the same since the 1970s. So changes in the law cannot be blamed for increasing tendencies for people to file tort claims against businesses, nor can the courts. If anything, one of the most significant concerns of the courts is the damaging consequences of a litigation culture on businesses.
One of the leading causes of increased personal injury litigations is the aggressive marketing strategies employed by law firms. These marketing strategies have done a great deal at enlightening the audiences about their rights.
Besides helping their audience know their rights, personal injury lawyers flaunt some of the best payouts they have ever recovered for their clients, which can sometimes run into millions of dollars. The high payouts act as a motivation for people wanting to seek litigation for matters they would otherwise not have sought litigation.
The Effect Litigation Has Had On Small Businesses Owners
Insurance companies are in business for profit like any other business. When there is an increase in successful claims, the only option is to increase their premiums to cover the risks making the increasing cost of premiums a big challenge for small business owners. Higher premium rates mean a higher cost of doing business, directly impacting profits.
Besides the general increase in premiums due to increased personal injury lawsuits, the costs can get significantly higher if a claim is made against your business. So you may want to ensure that you do the best you can to minimize the chances of an accident linked to your company and keep your premiums low.
Protections against Personal Injury Lawsuits
General Liability Insurance
If you have a physical location for your business, you must ensure the safety of the people who enter your premises legally. You could be liable for the accident if someone suffers harm on your premises.
Also, if your business deals with the production and sale of products or services, there is a chance that the products you release into the market could harm users. If it happens, your business will have liability for damages suffered by users.
General liability insurance helps deflect liability from these scenarios, among others. If you are injured at work, at business premises, or have been harmed by using a product, working with a reliable law firm like Fran Haasch can help ensure you get fair compensation. When choosing a law firm, you must establish if they have prior experience with similar cases and that they have offices in your area.
Workers’ Compensation Insurance
Most states require businesses to carry workers’ compensation insurance. Workers’ compensation insurance is state-run and covers businesses against liability for injuries suffered by workers while on the clock.
Even when your state doesn’t mandate carrying workers’ compensation insurance, it is a good idea to have one to deflect possible liability for injuries that occur in the workplace.
Professional Liability Insurance
If you are running a business that offers services that require professional expertise, such as a hospital, legal firm, or accounting firm, you may want to consider carrying professional liability insurance. This type of insurance helps deflect liability that could result from errors in service provision, such as medical malpractice lawsuits.
Leave a Reply