Will liability insurance work for my business?
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If an employee gets injured on the job and files a lawsuit claiming the manager was negligent, will a liability insurance policy protect the business and manager?
Asked May 16, 2015
Commercial liability insurance is designed to protect a business against several different perils faced by the business. It protects your offices, the work you perform, and accidental damages incurred during performing the job. Business liability also covers you against claims from customers or employees related to bodily injury for many situations, including any expenses related to litigation.
Bodily injury protection covers any injuries caused in process of performing regular company business, including injuries caused by tools, materials, and employee performance. If the manager was negligent, causing an employee to be injured, any lawsuits related to the claim may be covered if it can be shown that negligence is, indeed, the cause.
In the workplace, manager negligence may be difficult to prove. For example, if the employee got injured while using a piece of equipment that was not properly maintained by the manager, the employee would have to prove that the maintenance was the direct responsibility of the manager rather than a task is typically delegated to another employee. The injuries would be covered under the liability policy, but winning the lawsuit will depend on due diligence and a court of law.
In a situation where the case comes down to the employee's word against the manager's, the insurance company may deny the claim pending a court decision. If cause of the incident is obvious or highly likely, the insurance company may decide to settle the case out of court and make a monetary offer to end the conflict.
Answered May 17, 2015 by Anonymous