Liability insurance is part of an overall insurance scheme of risk management to protect both the buyer and the seller against the potential risks of lawsuits and other claims imposed by lawsuits, which may arise in the course of a business. Liability insurance policies are designed to offset the financial risks that occur when a product is sold. While the policies may protect against some risks, such as those associated with defective products or services, they do not protect against all risks. For example, the liability insurance does not cover a manufacturer against a product liability claim.
In addition to protecting yourself against product liabilities, liability insurance also helps you protect your company against the consequences of errors or negligence in contracting. One area where liability insurance can be especially useful is when you are considering hiring someone to work for you or when you are adding citations to your business’s website or when you are submitting information to the World Wide Web. If you have sourced your content from unreliable or unsourced sources, the result can be disastrous for you. The dangers of providing inaccurate or false information can be far-reaching and can harm your business.
In addition to harming your business, inaccurate information about your operation can harm your employees. In many states liability insurance protects your workers from claims stemming from personal injuries, property damage, and medical malpractice. If you have injured an employee in the course of your job, the law requires that you take reasonable steps to protect them from future claims of negligence or damage. In addition, liability insurance will cover your legal costs in the event of an injury. In the event that your employee develops an injury that requires medical treatment that falls outside of your company’s normal operating procedures, you will be responsible for their treatment and any other costs that exceed your policy’s limit.
Under the right circumstances, your liability policies can provide protection for your workers in the event of an accident. However, by leaving this type of insurance coverage out of your operation’s Manual, you could be exposing your employees to unnecessary legal expenses and damage. When you take the time to carefully review the contents of your manual and identify areas where you could reduce the liability limits on your operations, you can cut your liability costs without reducing the level of protection for your employees.
For example, consider two hypothetical employees, Jessica and Bob. Jessica has worked for your company for several years, climbing the ranks to manager before becoming a division head. She has always been held to the same high standards of conduct and ethics that have defined your company’s reputation. Bob, on the other hand, is a recent employee. He joined your company only a few months ago, taking advantage of a lower level of entry for entry level jobs.
According to Jessica’s insurance agent, there is no liability coverage available to him because he is a new employee. He will not be covered for any property damages or medical expenses resulting from an on-the-job injury. In order to be eligible for the full amount of liability coverage, Bob must first show proof of being injured on the job, such as a certification from his employer, and that he will be unable to work for a period of time due to the injuries. If Bob’s doctor agrees that Bob has suffered an injury on the job, he should file a claim with his company’s insurance carrier within two weeks. The insurance carrier should pay for any medical expenses and lost wages paid to Bob.
According to the Georgia Department of Insurance, all 50 states require some form of liability insurance. However, the required limits vary from state to state. Most states require a minimum coverage limit of no less than $1 million per occurrence, but many other states only require a maximum coverage limit of no less than two hundred thousand dollars per occurrence. Because the costs of medical bills, property damage, and pain and suffering can be staggering, it is important to shop around for the best liability insurance rates.
Auto liability insurance is not an expensive issue in Georgia but knowing your state’s liability insurance limits is crucial. If you are in Georgia, consult an auto insurance agent about liability coverage limits and what they might mean to you. A knowledgeable agent will be able to explain the various types of coverage available, and explain why one might need to have more coverage than another. It is not uncommon for agents to be willing to work with clients to find the right coverage at the right price.