Running a business is rewarding, but it also comes with its fair share of risks. One small mishap could turn into a big legal headache, and before you know it, you’re knee-deep in a lawsuit. The good news is, with general liability insurance, you can prevent these incidents from draining your bank account. Here are some real-life lawsuits that show just how important having the right coverage can be!
1). Slip-and-Fall Mishaps
Slip-and-fall lawsuits are one of the most common claims for businesses, and one restaurant learned this the hard way. A customer slipped on a wet floor and suffered a back injury, leading to a lawsuit for $100,000. The customer sought compensation for medical expenses, lost wages, and additional costs because they couldn’t work due to the injury. Without general liability insurance, the restaurant would have been on the hook for the entire amount, plus legal fees.
2). Property Damage Fiascos
Imagine running a bustling beauty salon and everything is going great — until one of your new beauticians drops a bottle of nail polish that spills all over a customer’s pricey handbag. That’s exactly what happened to a salon that was then sued by the customer to replace the damaged property.
3). Privacy Violations
Ever shared a before-and-after photo of a project online to show off your great work? Most businesses have. But one home decor business faced an unexpected lawsuit when a client discovered that photos of their remodeled wardrobe had been shared online without permission. The client sued for invasion of privacy, leading to a hefty legal process. General liability insurance can help cover these types of claims, making sure you’re not left financially drained over a misunderstanding.
4). Product-Related Injuries
A lawn care company thought they were doing their clients a favor by selling an organic pesticide. Unfortunately, a customer accidentally inhaled the product’s vapors and suffered a severe allergic reaction. The customer sued for $100,000 in medical expenses and other damages. Product-related injuries can be devastating for small businesses, but general liability insurance would have stepped in to cover the costs and keep the business afloat.
5). Copyright Infringement Gone Wrong
It’s easy to get inspired by others, but that inspiration can sometimes cross the line. A personal trainer started calling himself “The Rocker” after a celebrity with a similar name and used a photo of that celebrity in his advertisements without permission. This led to a copyright infringement lawsuit. The trainer’s general liability insurance would cover legal fees and potential settlements in a situation like this, making sure a branding mishap doesn’t bankrupt your business.
Protect Your Business from the Unexpected
These real-life cases show that accidents, misunderstandings, and mistakes can happen to anyone, no matter how careful you are. Having general liability insurance isn’t just about following regulations — it’s about protecting your business from financial ruin when things don’t go as planned.
Not sure if you’re fully covered? Let us help! At Avalue Insurance, we specialize in helping businesses of all shapes and sizes get the coverage that they’ll need for the road ahead. Give us a call at 303-773-3332, email us at info@avalueinsurance.com, or request a consultation right here online!
