Comments on: How does business insurance work in a lawsuit?

By: dfsd

dfsd — Tue, 23 Feb 2010 00:17:42 +0000

I think it’s mostly similar to the auto insurance. So you can get all the liabilities similar to the auto insurance, Or try to contact an advocate.

By: Tom Z

Tom Z — Sun, 21 Feb 2010 21:04:45 +0000

In the event of a lawsuit the insurance company would undertake your defense and pay the associated legal fees as well as paying for legal counsel. The insurance company has complete legal control in the litigation process, they choose whether to settle or contest the issue in a court of law. In the real world it is rare that an insurance company would actually go to court. In most cases they would seek a settlement.

This of course assumes that the incident is covered by your policy. A lawsuit may contain several complaints. The insurance company is obligated to provide a defense for you if any of the claims could be covered, but the company may not be obligated to pay the damages for certain types of claims. Liability policies, for instance, typically do not provide coverage for damages which you cause intentionally.

By: SSandecki

SSandecki — Sat, 20 Feb 2010 18:28:14 +0000

Basically it would work the same as auto insurance; business insurance will cover you up to X amount of dollars in liability and losses. Just like an auto insurance company they would go to court to fight any lawsuits brought against you that would be required to be paid out by the insurance company itself. However, if the amount is greater than what the business insurance covers they can come directly after your company. All in all, it’s a good idea to have liability insurance.

By: mabeckh

mabeckh — Wed, 17 Feb 2010 17:41:37 +0000

Your liability insurance carrier would be in total control of the litigation process. They would decide whether to settle, go to court, etc. without any input from you. They would also pay all defense costs.