Shopping for a business insurance quote can be a process that focuses primarily on price versus coverage. Let us look at some of the basic legal liability exposures that a small business insurance quote for you as a proprietor might face in light of your insurance portfolio. Please keep in mind that getting a free business insurance quote can have little meaning if your legal liability is not protected.
Business liability insurance quotes typically do not cover any type of criminal law violations. Business Liability Insurance Quotes focuses in on the civil law violations which are acts that injured people and or property. The civil law violations can also be called a tort liability. There are four common elements of a tort liability claim in which the commercial liability insurance is designed to protect.
- The first element of a tort liability breach is called wrongful invasion. If there is no wrongful invasion then there is no breach and thus no tort liability claim.
- The second element of a general liability claim is that of a legally protected right and/or duty.
- The third element is that there needs to be a resulting causation from the tort.
- Finally there needs to be direct and/or proximate damages from the breach.
These four elements form the basis of tort liability in the United States of America. Thus, the business liability insurance quote you get should mirror these four elements when it comes to invoking coverage. Making sure that your business insurance quote clearly is designed so as to track with the legal liability laws of this nation is important to ascertain whether you are paying for coverage that you might not have.
The negligent tort is the most common type of civil wrong. The other two types of torts are described as an intentional tort, and a strict/absolute liability tort.
The negligent tort. The legal duty from this tort usually arises out of the common law rules of society and statues and ordinances. Breaching this duty for failing to exercise reasonable care to the duty that is owed can be deemed as negligence. The free business insurance quotes that you get should be designed specifically to provide protection from these types of negligence. The reasonable person or prudent man test is usually the norm that the court will follow. There must be damages with regards to this negligence. If there are no special damages, general damages, punitive or exemplary damages, or injunctions, there is generally is no basis for a negligence claim. When getting your small business insurance quotes it is important to align what you are getting versus what you need. Finally, there must be some kind of cause and effect more commonly referred to as proximate cause of the accident or occurrence in order for there to be negligence.
The most common defenses against negligence can be that there was a lack of negligence due to the four elements having not been met. Sometimes there are tort immunities for certain persons and/or organizations which is a defense against negligence. Other times there can be a statue of limitations for which the plaintiff loses their right to bring a lawsuit. There can be an assumption of risk such as when you purchase a ticket to a concert, skiing down a mountain, or riding the roller coaster. The last two defenses sometimes go hand-in-hand and are called contributory negligence and/or comparative negligence. Your business insurance quote should include the correct general liability insurance coverage to defend you against negligence claims. A business insurance online quote can me more dicey in that “you” as the small business owner will have to decide upfront what coverage you want versus leaving it up to the broker to decide.