Business insurance corrupt
Liability Insurance acts as a “financial shield” when your business causes injury to others or damage to their property, resulting in a legal claim against you. Legally, if we commit a tort (wrongful act), we must provide compensation until the situation is restored. This type of insurance steps in to pay for those damages—including legal fees and defense costs—on your behalf.Why is this insurance so important today?
- Stricter Consumer Protection Laws: Nowadays, it is easier for consumers to file lawsuits. There is also the “Liability for Damages Arising from Unsafe Products” law (PL Law), where manufacturers must be held responsible even if the error was unintentional.
- High Litigation Costs: Besides the compensation you must pay the opposing party, lawyer fees and court proceedings are often higher than expected. Insurance covers these costs as well.
- Brand Reputation: Having insurance allows you to negotiate and settle with the injured party quickly, reducing the chances of the issue escalating on social media.