Utah Business Liability Insurance

Utah business liability insurance is designed to make sure a Utah small business stays in business and is not ruined by a lawsuit, even if they are liable in an incident. Accidents do happen and mistakes are made, which is why you want to make sure you are covered. You can train your employees until they are experts in safety. You can also make sure that your employees are the most honest people, but there are never any guarantees, so you want to ensure you have liability insurance in place to make sure that their mistakes do not lead to a loss of job security.

The probability that someday an incident will occur that will result in a lawsuit against you is rather high. Because of that, many businesses throughout Utah carry liability insurance. Actually, all companies should be insured because every company is susceptible to a lawsuit. Each time the doors open, risks are being taken. And when a lawsuit happens, you have to evaluate your options when it comes to settling the case.

Consent to Settle Clause

The consent to settle clause is something that may be contained in your Utah business liability insurance, especially if you carry professional liability insurance. Professional liability insurance is that coverage within our Utah business policy that protects you against omissions in paperwork or other errors that result in some kind of damage being done to someone. Your Utah Business coverage enables you to make sure you can pay for the damages if you are deemed negligent in the case.

The consent to settle clause means that the Utah business liability insurance company can't settle a claim without your permission. They will, however, strongly suggest that you allow them to if you are deemed negligent. Even if you don't think that you are negligent, that doesn't matter. Your UT liability insurance carrier may feel that you may lose your case, so they suggest that you settle.

The reason why you may want to listen to your Utah business liability insurance and settle is because going to court could become even more expensive with the court costs and the judgment against you. The judgment could be tens of thousands more, so settling, as long as the injured party agrees, can be the ideal solution.

Refusing Consent to Settle

What if you refuse the consent to settle clause? What if you decide that you want to fight? If you truly believe that you were not negligent and that you can prove that you were not negligent, tell your Utah business liability insurance company. You can tell your Utah business insurer that you want them to defend you in court because you feel that settling could ruin your reputation and that it could hurt you in other ways.

Just keep a few things in mind if you tell the Utah business liability insurance company that you want to settle. First of all, the claim amount may be a small amount. If you were to go to court and were found to be liable, the amount that would be paid would be significantly larger than a settlement amount. Furthermore, you would find that your reputation would be damaged worse if you were to lose a lawsuit in court than to just settle.

Nevertheless, if you tell your Utah business liability insurance company that you want to refuse the consent to settle and fight it, they will work with you. Your liability insurance covers the court costs of your Utah business and will pay the amount that you are demanded to pay if you were to lose your lawsuit. You just need to make sure you have high enough limits to cover it and you need to make sure the limits are high enough before a claim is ever filed against you.

If you refuse to consent to settle, you cannot suddenly raise your coverage amount with your Utah business liability insurance because you are in the middle of a claim. So if you have $500,000 in coverage and you find that other cases within your industry in UT have resulted in multi-million dollar awards to plaintiffs, you may want to make some changes. The last thing you want is to have $500,000 in coverage and then find that you will need to pay $1 million. The other $500,000 would come from your pocket and from your assets.

It is your choice if you consent to settle or not. Just make sure that you evaluate your evidence and your case carefully to find if that's the best option for you. And take into account the advice that the Utah business liability insurance company offers you in these cases. They have handled a lot of cases, so they will most likely know what to do.

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