How To Protect Your Business Against Lawsuits

    Published: 06-16-2009
    Views: 10,417
    Wells Fargo financial expert Corey Dargan provides tips for protecting your business against lawsuits.

    Corey Dargan: Hi! I am Corey with Wells Fargo and Company. Today, we are discussing why you may need more than the minimum amount of business liability insurance. Especially in today's lawsuit-prone culture; regardless of how meticulous you are with your professional business practices, chances are if your company offers advice, shares expertise or provides a professional service, your organization may one day be sued.

    Think about it; if your company was sued and the total settlement exceeded your business insurance liability limits, what would you do? One way to get the extra protection you need is do an Umbrella Liability policy. This virtual coverage may be purchased in increments so you can buy the coverage you need now and increase your limits as your company grows.

    Other common insurance offerings that can provide additional coverage, include professional liability insurance, helps protects you and your business in cases of alleged faulty service or the failure to provide the service altogether and pace for legal defense cost and awarded damages up to the policy limits.

    This coverage is also referred to Errors and Omissions coverage. Directors and officers liability helps protect a company from losses due to legal judgments and related defense expenses, if allegations or wrongful acts are made against the businesses, directors or officers.

    Employment practices liability insurance helps protect employers from employment related by claims made by current, potential or former employees. Beyond insurance, here are a few tips to protect your business against lawsuits. Insure your business is in compliance with state and federal requirements. Hire an attorney to create legally and forcibly contracts for your business. Work with your attorney to create a company policy document.

    Review policies with employees, then retain documents signed by employees and acknowledge their understanding of company policies.

    Maintain a safe environment for customers and employees, for safety warnings and high traffic area. Finally, work with the business insurance agent, who is knowledgeable about the risk we face. And since a lot can happen in a year, review your policies annually.