Business owners typically secure commercial insurance to protect their company from damages caused by theft, fire, floods, and utility disruptions. However, another type of threat looms large for many businesses: civil lawsuits. Unfortunately, many businesses forgo insurance protection from lawsuits because they falsely believe they won't be sued, or they are unaware that such commercial insurance protection exists.

Without effective commercial insurance protection, businesses can face out-of-pocket civil judgments, attorney fees and court costs that can lead to bankruptcy or severely hinder their ability to continue daily operations. In today's blog post, we'll look at three common types of civil lawsuits businesses may face, and how commercial insurance offers protection for companies.

Liability Tort

One of the most common types of civil lawsuits filed against businesses is called a Liability Tort, in which a company is sued for causing injury or damages, due to malfunctions, employee accidents, defects, or a lack of warning labels. Examples may be allergic reactions to a food or product, burns from faulty hot beverages containers, or product malfunctions that cause injuries. However, General Liability and Product Liability policies can protect business facing major lawsuits, attorney costs, and court fees.

Negligence

Businesses may also find themselves facing a civil lawsuit for negligence, meaning the business and/or business owner failed to fulfill an obligation or was careless, causing harm or damage to an innocent party. For example, an individual might sue if a commercial truck driver causes damage to their vehicle, a retail store fails to provide adequate security during major sales events, or a restaurant fails to provide warning signs for slippery floors. Rather than be forced to pay thousands or even millions out-of-pocket for judgments and legal fees, a company can get protection with General Liability or Excess Liability coverage.

Infringement

Another type of lawsuit companies may face is infringement, when a company uses the trademarked property of another company or individual without permission. For example, a bar or restaurant might be sued if they use the name or likeness of another company to name a specialty drink or menu item. In addition, if retail store or contractor uses a copyrighted song in advertisements or promotions without permission, they can also face infringement lawsuits. General Liability and Excess Liability coverage offers financial protection in the event a business is sued for infringement.

Aegis believes that companies should never have to face bankruptcy or permanent closure simply because of a civil lawsuit. Aegis partners with businesses to provide a full range of commercial insurance protection, including General Liability coverage, Excess Liability, Business Owners Policy, Commercial Auto, Commercial Property, and Workers Compensation coverage. Contact our friendly and experienced agents at 713-850-7622 for more information, or go online to request a free quote today!