When liability lawsuits are brought against companies in the US, they can often result in judgments exceeding $1 million. Even if the courts rule in your company’s favor, your business can be out several thousands of dollars due to court costs, legal defense fees, and lost work time unless it is covered by right kind of liability coverage.
Think you don’t need liability coverage for your business? Consider this: Statisticians predict that as many as 40% of small businesses are likely to have a property or general liability lawsuit brought against them in the next 10 years. Customer slip and fall injuries are among the most common lawsuits brought against businesses and the average cost per claim for these falls is $20,000.
Commercial liability insurance can protect your company by covering the expenses that may accrue if your business is sued. Of course, liability lawsuits aren’t the only risk faced by US companies. Here are some other things businesses have been using their insurance to cover:
- Theft and burglary: The average cost per claim is $8,000
- Water damage and freezing pipes: The average cost per claim is $17,000
- Wind and hail damage: The average cost per claim is $26,000
- Fire damage: The average cost per claim is $35,000