Legal Mistake #5: Are You Unsure of Your Insurance?
The three main types of insurance that companies deal with are property, workers’ compensation, and liability insurance.
Don’t Set Your Limits Too Low
Knowing how much is reasonable frequently poses significant issues for companies. Because lawyers know the “market” for damage claims (that is, how much a potential lawsuit or damage loss could amount to), it is generally a sound idea to confer with legal counsel about your limits.
Don’t Fail to Comply with Insurance Reporting Requirements
Another area of exposure for businesses is compliance with insurance reporting requirements. All insurance policies have requirements for reporting losses or claims. Some of these are complex and require creating steps of notification to attach coverage. If the proper steps are not taken, insurance companies may be within their rights to deny coverage for liability claims.
Do Maintain or Renew Your Policy
An equally onerous situation can arise when your insurance policies are not properly maintained or renewed. In a recent instance, a company near our home office failed to timely renew their workers’ compensation coverage. A horrific accident occurred where two young men were severely injured. Their injuries should have been covered under the company’s workers’ compensation coverage. However, because there was no policy in place, the lawsuit came against the company and, up to the point of settlement, the judge kept the individual owners in as defendants in the case, effectively stripping them of limited liability.
Legal details should be left to legal experts. When you hire Davis Business Law’s legal counsel to assist you in the management of your company, you can rest assured these requirements to protect your company will be met in a timely and complete manner. Contact us today for a free case assessment and start getting the legal coverage and protection you deserve.
The content on this page has been reviewed and approved by Matthew Davis: CEO of Davis Business Law.