Large Losses Are a Threat to Every Business

Many trends in today’s business world are exciting and encouraging. Unfortunately, the number of lawsuits and high-dollar awards in liability cases are not one of those positive trends. Here are a few recent news headlines from around the country:

• Pennsylvania hotel sued for concussion from shower slip.
• Fatal two-truck accident case in New York results in $3.97 million settlement.
• Virginia victims get settlement checks (about $9 million) over toxic drywall.

There’s no way to prevent lawsuits like these entirely, but you can manage the impact. A business catastrophe liability policy serves as financial protection, or a cushion, against a legal judgment for a covered loss, beyond the limits of your underlying insurance policies. A business catastrophe liability policy functions in a similar fashion to a personal catastrophe liability policy.  Personal catastrophe liability —commonly known as “umbrella” – coverage can provide an extra layer of liability protection over and above your auto and homeowners policies in the event that a covered claim is made against you (or a covered family member). Like a personal catastrophe liability policy, a business catastrophe liability policy doesn’t replace your present policy. Instead, it bolsters it with an additional $1 million (or more) in liability protection. Examples of business liability claims Research shows that four out of 10 small businesses are likely to experience a claim in the next 10 years. While most of these claims will be covered by an underlying policy, some claims will exhaust a business’s underlying policy. If that happens, the very future of a business could be at stake if applicable coverage under a business catastrophe policy is not in place. Here are some types of situations that could lead to costly claims:

• Product liability
• Customer slip and falls
• Reputational harm like libel or slander
• Someone being struck by an object

Protect your business Not having enough liability coverage for your business could spell trouble down the line. Protect what you worked so hard to build by contacting Melendez Insurance.