Posted on January 15, 2010.
Statistics show that for millions of Americans, insurance is more than worth the cost Today, many small businesses operate without liability insurance - with the exception of insurance of occupational accidents, which is required by law. In many cases, business owners simply want to reduce operating costs, but in the current climate in which workers' compensation claims have soared, operating without liability insurance is a practice volatile.
With a single application, which took years to build can be destroyed. Without liability insurance, the company can take a major blow in the litigation process and the owner's personal assets may be vulnerable. Consider that in 2007, according to the Bureau of Labor Statistics, there were more than 335,000 cases of employees injured at work because of contact with objects and equipment.
Workers' compensation, which is required by law in all 50 states, protects employers from liability for an accident involving an employee. This will cover medical expenses and lost wages for injured employees. In disability cases, it will provide a lump sum or annuity. It is increasingly important for employers to review their general policies of liability insurance to provide coverage protects against claims made for bodily injury or property damage. Should cover the medical expenses in defending the lawsuit, the institutions and procedures of appeal bonds or judgments.
Premiums on general and professional liability insurance can be costly, and often the cost deters companies only purchase. The cost, however, operate without liability insurance can be much more extreme. The out-of-pocket costs of filing a claim alone can quickly escalate and the amount of damage that may occur such as fire or theft could push a company to severe debt. If a worker is injured at work, the employer will face legal and medical fees. the workers' compensation insurance model, which is necessary at different levels by the state, provide a guarantee to society.
Cost of lack of insurance
In September 2007, the Bureau of Labor Statistics released a report detailing the remuneration of employees. Of the employers paid an average $ 28.03 per employee per hour. Of these costs, about $ 2.35 (8.4 percent) of total compensation went to the life, health and disability insurance - a nominal expense compared to the cost to contest or pay a claim.
Trial costs alone can be radically different depending on several variables such as type of application and if it was filed by a customer or employee. Employers can count on spending a significant amount of defending the case. Generally the costs and the following procedures:
* A summons and complaint filed against the company, resulting in several meetings and legal fees, including consulting, transcription and research expenses, all billed at an hourly rate.
* The application will then proceed to the deposition phase, which implies a settlement conference and trial date. In addition to billable hours and certain other charges, the attorney will also bill for filing documents.
* During the trial, the prosecutor hourly charges and we do not know how long the trial might last. It could range from a few days to several weeks. In addition to hourly compensation, the defendant was also charged for various legal fees.
* Legal fees may include transcription costs, allowances to witnesses, court reporter fees, consulting and filing fees, research costs and postage.
If the employee wins the case, the defendant - the employer - will load weight not only to pay.
