It is true that today’s culture has bred a litigious society. People can and will sue for everything and anything, even if it isn’t actually your fault. You can read about frivolous lawsuits every day.

Some of these cases are idiotic, many are obviously ignorant about the realities of running a business, and some are almost silly, but no matter how baseless a lawsuit is on the merits if the court issues a judgment against your business you could be out thousands or even millions of dollars in a true judicial massacre.

You need liability insurance to protect you from those sorts of miscarriages of justice where your company was not in any way at fault, but, even more importantly, you need good well thought out liability coverage for those times when it is your fault.

Nobody is perfect. That is a simple fact – not an excuse. Commentators often discuss frivolous lawsuits, but the truth is that courts have gotten a lot tougher on frivolous lawsuits in the last twenty years. Generally, frivolous lawsuits are no more than a hassle.

What you should lose sleep about if you don’t have liability coverage is that day when everything that can go wrong does go wrong. That’s what happened on the Titanic and that’s happened at Pearl Harbor and it can happen to your business. What’s the worst case scenario? Have you ever really thought about it?

Do you run a business where if one of your employees did not do their job correctly that a customer, or even worse a random citizen, could be maimed or even killed? How many times a day do your employees perform these potentially deadly tasks?

If you don’t have liability coverage you are trusting that those employees will do the job exactly right every single time? Do you trust your employees that much?

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The Employers liability Insurance is basically designed for covering the employees. There are times when they fall a prey to any physical injury or untimely death and it gets proved that it was because of the negligence on your part as an employer that the accident occurred and thus you may have been able to prevent this loss that they underwent. In such cases, if the affected employee decides to pursue you, the employer for the compensation, it is the insurer who will then pay for the cost of those compensation claims. The indemnity insurance is not actually designed for covering you against any risks regarding being sued of the compensation claims by the employees like wrongful discrimination and sexual discrimination.

This insurance policy actually enables your business to effectively meet all the costs of the legal fees along with the compensation claims for the employees who are either injured or suffer any ailment due to negligence on your part as an employer. It is important that you know that the employee who is injured by the accident can also seek the compensation irrespective of the current status of your business. That is to say, even if your business goes in receivership or liquidation, the injured employee is liable to claim compensation and you will have to abide by the law. So, you need to be well aware that the Employers Liability Insurance is basically concerned with the covering of the losses that your employees may undergo because of your fault. The compensation that they earn in such cases enables them to live their life while they are at home and unable to work. The compensation amounts though largely depend on who was at fault when the accident occurred, the employer or the employee.