Whether you run an online business or are constantly present at your company’s location, it is important that you are aware of liability laws and how they may impact you. Even if you operate a virtual company and have employees who work from an office, your business may be liable in the event that they are injured. Personal injury lawyers can work with your business to ensure that it is protected from liability claims. It is in your best interest to meet with a lawyer prior to starting your company so that you can deal with any potential liability issues.
Investing in Business Liability Insurance
One way to protect your business in the event of a personal injury lawsuit is by investing in business liability insurance. This type of insurance provides your business with coverage in the event that an employee wins a lawsuit against your company. If the employee is awarded a judgment by the court, the insurance policy will pay for the judgment amount. You do not have to worry about draining company funds to afford the claim of an employee.
Workers’ Compensation Claims and Lawsuits
Often, an injured employee will want to seek workers’ compensation. Workers’ compensation is a form of financial support that pays for all of the worker’s expenses during his or her time off of work. People typically only associate workers’ compensation claims with those who work in the construction industry. The reality is that numerous other individuals, such as working mothers, may also have workers’ compensation claims. An entire family may depend on the income of a working mother. If she becomes injured at work, then the family may need a source of income from a workers’ compensation award to survive.
Because state statutes typically limit the workers’ compensation award that an employee may receive, the employee will typically try to sue the business or other individuals responsible for causing the injury. Workers compensation lawyers can help your business prepare for a lawsuit if an employee has maxed out his or her workers’ compensation benefits.
Potential Liability in Owning a Business
If you plan on owning and operating a business that hires employees, then you must consider investing in insurance to protect your company. Hundreds of carriers have authorization to write workers’ compensation insurance policies in your state. An employee may also be eligible to receive compensation from a public carrier. States typically have their own state-run workers’ compensation funds to provide benefits for injured workers.
If a business owner fails to invest in workers’ compensation insurance, he or she may be subject to penalties under the law. A business owner may need to pay a hefty fine and may also face penalties for misrepresenting records. Failing to have workers’ compensation insurance for businesses with over five employees may be a felony or misdemeanor crime in one’s state.
Prepare Your Business for Success
Your business should always be prepared in the event of a lawsuit. If an employee is severely injured on the job and suffers from a permanent disability, then he or she may be entitled to unlimited benefits. Make sure that you are ready to handle any employee claims by speaking with a personal injury lawyer. A personal injury lawyer may help you find the right insurance policy or assist you if an employee has already filed a lawsuit.