No matter how frivolous a lawsuit against your company is, it can cost you significant amounts of time and money to resolve the problem. Fortunately, insurance coverage can help you avoid some of the worst consequences of litigation, allowing you to continue providing the products and services for which your company has made its name. There are many types of business insurance relevant to litigation that you can rely on for the assistance you and your business need, but sometimes disputes with your insurer can also arise. What options do you have at that point?
At Weisblatt Law Firm, our Texas business attorneys protect companies across the state from lawsuits, IP disputes, and other issues. If you are facing problems involving insurance coverage and business litigation, here is what you need to know.
A reliable team of business litigation attorneys is only a phone call away. Call Weisblatt Law Firm at (713) 666-1981 to speak with an experienced business lawyer today.
Types of Business Insurance Relevant to Litigation
Keeping Your Company Protected
As you consider which kinds of business insurance are important for lawsuits, there are some main options that our business litigation lawyers want you to consider.
General Liability Insurance
General liability insurance is a bit like your business’s safety net. It’s insurance that protects you if your business faces third-party claims. You’re not required to have this insurance in Texas, but getting it can be one of the best decisions you make for your company.
This insurance covers instances of bodily injury or property damage that occurs on your premises or because of your business’s operations. If someone gets injured or property gets damaged because of your services or products outside of your premises, you can rely on general liability insurance coverage.
Workers’ Compensation Insurance
If an employee suffers a work-related illness or injury, workers’ compensation insurance pays for their losses. Texas doesn’t require that you carry this insurance, but it’s in your best interests to do so. Without this coverage, your employee could file a lawsuit against your business to recover damages.
Professional Liability Insurance
If a client sues you for errors or omissions in your services, professional liability insurance can protect you. For example, if you run an accounting business and you make an error that costs a client thousands of dollars, this insurance would come into play. Keep in mind that this doesn’t cover work-related injuries, false advertising, or personal injuries.
When to Notify Your Insurer
You need to let your insurer know that someone is filing a lawsuit against you as soon as you learn about it. This allows them to conduct timely investigations into what happened. General liability insurance companies want you to let them know of any incident that occurs that could result in a lawsuit, even if there’s no claim yet. You’ll have to let the insurer know when and how the incident occurred, the names and contact information of the people who suffered losses, and the names and contact information of witnesses.
Coverage Disputes and Litigation
Disputes between your business and your insurer can be serious issues. They can occur when your insurer refuses to pay certain losses, usually stating that your policy doesn’t cover them. They can then name a variety of reasons to justify their decision, including stating that you gave them late notice, which can release the insurer from all liability.
Some businesses even face policy cancellations. This is when an insurer decides to cancel a policy before its expiration. That could leave you with a sudden lack of coverage.
Delayed payments are another concern that occurs when the insurer doesn’t pay on time for a valid claim. Any disputes over the owed amount and even administrative errors can lead to this problem. Your business could end up facing operational disruptions and cash-flow issues as a result.
There are also bad faith claims to worry about. These happen when an insurer acts dishonestly or unreasonably when handling a business claim. Everything from delaying payment without cause or denying a valid claim can fall into the category of bad faith claims.
If these issues arise and you’re left without the help you deserve, you need to be able to hold insurers accountable. Hiring business litigation lawyers who can fight for your best interests is essential.
With decades of experience in business law, Weisblatt Law Firm proudly represents companies of all sizes throughout Texas.
Maximizing Your Insurance Coverage
One of the most important things you can do to maximize your business insurance coverage is to understand your company’s unique risks. Aside from options like general liability and workers’ compensation, you may need more niche insurance to cover specific issues you could face. You can only understand what options you should choose if you carefully assess your risk outlook.
Make sure you also understand all policy conditions and that you comply with them. A lawyer can address any issues or concerns you may have about policies.
You should also regularly review your policies to ensure they still meet your needs. For example, your business may change over time and could require further protections. There may be gaps in coverage that could leave your business seriously exposed.
To help prevent lawsuits that could result in having to file claims with your insurance company, investing in risk management and prevention is vital. One of the best ways to do this is to hire an attorney who can point out potential issues that could result in lawsuits. Our team at Weisblatt Law Firm can assess your business, as well as your insurance coverage, and help you strengthen the protections you have in place.
Speak With Seasoned Texas Business Attorneys Today
Contact Weisblatt Law Firm
If you’re facing a lawsuit, being able to depend on your business’s insurance policies is essential. If issues arise with your insurer, however, you may be left without the coverage you paid for and deserve. The team of business lawyers at Weisblatt Law Firm can help you prevent lawsuits with risk management strategies, as well as fight for your business if there are insurance coverage disputes once you file a claim.
Let us safeguard your Texas business. Contact the skilled team at Weisblatt Law Firm by calling us at (713) 666-1981 today.
Attorney Andrew Weisblatt
Mr. Weisblatt has practiced continuously since becoming licensed in 1992 and has represented businesses ranging in size from one person start-up ventures to multi-national corporations employing hundreds of people in multiple countries. From 2005 through 2009 Mr. Weisblatt was in-house counsel and chief operating officer of a multi-national corporation in the steel products industry. That in-house position provided valuable insight into how businesses work and what they actually need from their lawyers – both in-house and outside counsel. Attorney Bio
