1. Construction Contractors
2. Healthcare (hospitals and physician practices)
3. Hospitality (restaurants, casinos, entertainment)
If you are in one of these highly targeted industries then it is imperative that you form a plan to protect yourself from the inevitable.
There are two kinds of risk that a business owner needs to protect against. The first source is called bottom-up risk. This is the traditional risk that is inherent in the normal operations of running your business. An example would be a heavy equipment contracting company that seriously injures or kills a person in an accident. The injured person (or their surviving family) would file a lawsuit against the business that uses the equipment in its business. In this scenario the business owner could lose the entire value of the business that caused the injury. But what’s worse, the liability could spill over to the business owner’s other assets. There is nothing in place to limit the liability only to the business entity responsible for the injury.
If we were to see this graphically bottom-up liability would look like this:
The #1 way to prevent a lawsuit from resulting in the surrender of your assets is to have the proper type and the proper amount of insurance! If you are engaged in a business, at a minimum you should have insurance that covers professional liability (business owner), general liability (property), and product liability.
This also applies to people who own rental properties. Disputes are common in the areas of the terms of the rental contract, condition of the property, repairs/service, etc. It’s also not uncommon for injuries to occur on the property that will eventually lead to lawsuits against the property owner. Insurance is a very effective way to cover these kinds of potential liabilities.
One of the greatest benefits of having proper insurance in place is that an insurance company can provide legal defense in court for items that are covered by the insurance policy!
Getting started is easy. The first step is to let us know how we can help you. Just fill out the simple contact form below and we will be in touch with you right away – or just call us at 480-699-5540.