If you work to produce goods for the public, you know that there may be a time when someone sues for an injury. Perhaps they claim that your product wasn't safe or sanitary, leading to a serious injury. Maybe they'll say that your product was mislabeled or intentionally misrepresented.
Whatever the case is, insurance defense is vital. While you carry insurance to cover cases like this, your attorney will make sure that any claim that goes to your insurance company is fair. When a client approaches you with a lawsuit or insurance claim, make sure you let your attorney know right away.
Insurance carriers focus on paying out only what they have to pay. They scrutinize every case to make sure they're not paying out to someone who is overexaggerating injuries or submitting fraudulent claims. You should be doing the same thing.
If you have contracts with clients or partners, make sure there's an arbitration clause in place for you. If a claim does have to go through your insurance, it's bound to increase your rates. You'll want to consider the best course of action long before that claim is submitted. Talk to your attorney about how to settle the case without using insurance or finding a way to guarantee that a false claim won't be paid. Your business is your livelihood, and it's essential that others aren't taking advantage of you.
Our site has more on insurance defense and coverage. Your business needs protection against unfair claims, fraudulent claims and any other unusual situations that may arise.