You Could Lose Your Entire Business in a Personal Injury Claim. Here’s How to Protect Yourself

You Could Lose Your Entire Business in a Personal Injury Claim. Here’s How to Protect Yourself

Personal injury claims against small businesses have increased exponentially in recent years. The increase is not only in terms of prevalence. It is also in the amounts of payouts awarded by the courts. 

Given these trends, all it takes is one incident to see a business that took you years to build crumble. However, here are some things you can do to protect it. This guide gives an expert’s perspective on protecting your business and could be a good read for every Michigan business person. 

Carrying Adequate Insurance

No environment can be 100 percent incident-free. So, there is always a chance you could face liability when your negligence is a factor in an accident. So, you want to ensure that you are adequately insured. “For your business premises, you may want to carry commercial general liability insurance, which offers blanket protection for businesses from bodily injury, property damage, and reputational harm,” says personal injury lawyer Larry Buckfire of Buckfire Law. 

Also, if you have company vehicles, you may have to carry statutory minimum coverage for the types and purposes of the vehicle. However, it is important to consider that minimum coverage may not offer you adequate protection as you could still have to pay a victim out-of-pocket cash if their damages exceed your insurance coverage. So, when purchasing coverage, you want to consult a financial expert to establish what coverage will offer maximum protection. 

Stay Updated With Personal Injury Law

Changing tort laws will impact your business in the event of an incident. As such, you will want to stay updated to avoid instances that could result in accidents and lawsuits. You may not understand everything about Michigan tort laws and running a business, which is why having a lawyer on retainer is essential. 

Having a lawyer by your side ensures that your rights are protected and that you have someone experienced to navigate complex legal issues on your behalf.  

While your coverage deflects liability to your insurer, every payout increases premiums. 

Focus On Safety Compliance

Compliance with safety requirements for your industry is critical. First, it helps avoid incidents that could cause injuries and, consequently, lawsuits. Secondly, it helps avoid additional penalties that could accompany compensation awards. 

For example, accidents that result from non-compliance with safety standards can attract punitive damages that can significantly increase a claimant’s settlement figure. 

Michigan tort law does not use the term punitive damages. Instead, it uses the term exemplary damages, but its application and intent are almost similar. However, rather than seek to punish a business, exemplary damages are meant to compensate the victim for emotional harm caused by a business’s conduct. 

Stay Vigilant

Being vigilant can help you avoid accidents before they happen and, in so doing, protect your business. Vigilance can mean different things for different businesses and industries. For example, vigilance could mean clearing spills before they cause an accident if you are running a restaurant. 

You may also want a standard protocol for identifying and handling hazards. Also, having a safe environment may be a business goal. But if an accident occurs despite your best efforts, ensure you involve a lawyer to better your chances.