If you have insurance, you should be aware that negligence can occur when a business or individual fails to act reasonably in the face of repairs that could lead to more damage. If you or your company is found to have been negligent, your insurance company may not cover all of the damages.
What Is Insurance Negligence?
Insurance negligence occurs when an insured individual or organization fails to act reasonably in the face of repairs that could lead to more damage. If you or your company is found to have been negligent, your insurance company may not cover all of the damages. This can create problems with loss ratios, which affect how much money an insurance company makes on a policy.
There are many ways that a business can be negligent, but here are some examples:
- Not following safety regulations.
- Failing to warn customers of dangers that they could encounter while on the premises.
- Failing to provide adequate training for employees and supervisors.
- Failing to properly maintain equipment and machinery.
- Failing to keep premises safe from hazards such as tripping hazards or falling debris.
Commercial insurance policies are often written in a manner that is extremely difficult to understand. This fact can leave many business owners in a bind because they do not realize their own negligence until after a lawsuit has been filed against them for an incident involving their product or service. The way to be proactive about this situation is to contact an attorney that specializes in these types of cases and have them assist you with reviewing your current commercial insurance policies and helping you determine if you need to make any changes to your policies that would better protect your company from liability claims.
Have questions for a commercial lines insurance expert? Schedule a no-obligation consultation with us through TelaClient.com!