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Types of lawsuits covered by general liability insurance
In each of the following examples, the insurance company would cover the cost of the lawsuit up to the general liability policy limit, paying for a lawyer to represent the company and covering the final judgment or settlement in the case. The judgment is when the judge or jury rules on a dollar amount you owe the party suing your business.
A contractor is installing a new kitchen. Unfortunately, one of his co-workers forgets to shut off the water and floods the kitchen. The water seeps into the floors and the walls of the finished basement. The homeowner sues them for $200,000 in damages.
A restaurant is sued when a produce delivery man slips on the wet floor of the freshly mopped kitchen. The produce is destroyed in the fall, but the real damage is done to the delivery man's shinbone, which he breaks smashing into a table. He sues the restaurant for $100,000 in medical costs, lost wages, and other expenses submitting a claim to the carrier.
A photographer is shooting senior photos for a client. As the family walks into the studio, the mother trips over a cord and falls to the ground, breaking her collarbone. The family sues the photographer for $75,000 in medical damages and submits a claim to the carrier.
A lawn care company sells a bottle of organic pesticide to a client. While applying the pesticide, the client accidentally inhales the vapors and suffers a severe allergic reaction. The client sues the lawn care company for $100,000 in medical costs and other damages and submits a claim to the carrier. However, some cases are resolved before that point. Settlements occur when both parties voluntarily agree on an amount of damages out of court. One of the benefits of having insurance is that the insurance company often helps small businesses settle their lawsuits. The insurance company can pay for a settlement, which will help you avoid spending more time or money in court.
For home policies, there are three common types of deductibles: A flat deductible, A percent deductible and A split deductible.
You can let your CSIA agent know, but to get the claims process rolling fast, you can report a claim online period.