Real Claims, Real Protection: How Insurance Saved These Businesses
Lawsuits and financial disasters are never pretty, and winning doesn’t always mean walking away unscathed. Legal battles, medical expenses, and property damage can drain businesses of time, money, and reputation. Here are some real claim examples where businesses did manage to survive, but at a significant cost.
Professional Liability Insurance (E&O)
Claim: A CPA firm miscalculated a client’s tax filings, which led to an IRS penalty of $250,000. The client sued for financial damages, along with a demand for reimbursement.
Professional Liability Insurance (Errors & Omissions) saved the day, covering $180,000 in legal defense costs and the $250,000 settlement, saving the firm from financial devastation.
Workers’ Compensation Insurance + General Liability
Claim: A roofing contractor’s employee fell from a two-story building, resulting in significant fractures. The medical bills and lost wages totaled $140,000, alongside a $500,000 lawsuit for the company.
Workers’ Compensation Insurance stepped in and covered the medical expenses, whereas the General Liability Insurance handled the lawsuit – making sure all ends were covered. Even though the business survived, higher insurance premiums followed.
Commercial Property Insurance + Business Interruption
Claim: A massive fire break-out led to $400,000 in property damages, forcing a 2-month closure.
Commercial Property Insurance chipped in and covered the repairs; on the other hand, Business Interruption Insurance covered $150,000 in lost revenue. The restaurant reopened, but the downtime cost loyal customers and required aggressive re-marketing.
Cyber Liability Insurance
Exposing 10,000 client records with lawsuits and regulatory fines of up to $750,000 left the business in a shaky situation.
However, Cyber Liability Insurance stepped in and covered legal fees along with credit monitoring for all affected clients. Even though the firm avoided financial disaster, it’s reputation took the hit.
Medical Malpractice
Delayed diagnosis is common, but this cancer diagnosis led to a $1.2 million malpractice lawsuit. Medical Malpractice Insurance covered over $1 million in legal costs and settlements, saving the physician’s practice.
Businesses faced setbacks even with insurance, including lost time, reputational damage, and increased costs. However, without insurance, these businesses would have faced complete financial devastation, losing millions of dollars out of their pocket.
Is your business fully protected? Let’s talk.
For expert advice, contact Shayne Bevilacqua at Professional Liability Insurance Group.
Call or Text us at +1 (877) PLIG – 123, That’s (877) 754 – 4123.
