Operating a business in our litigious society involves risk. A lost lawsuit can cripple or even bankrupt a company. If a product is deemed unsafe, the manufacturer’s reputation, as well as its finances, are at stake.
There is insurance coverage available to protect your company. And there are also legal limitations to consumer lawsuits. Obtaining the right insurance coverage, plus having a good understanding of the law, can give you a big edge.
However, don’t rely solely on an understanding of the law. First and foremost, ensure your company is covered. You can’t predict when a lawsuit will occur, and even cases that are dismissed can result in costly legal fees. It’s essential to always have the right liability insurance for your company.
Legally, consumers have a limited time in which to file a liability claim under the statute of limitations. This varies by state. All states allow at least one year to file, and many have two-year limits. Some provide three years, but few set it higher than four years.
The statute of limitations kicks in when the injury occurs or when the injured person discovers the injury, depending on state law. Some states impose “statutes of repose” that establish a second deadline for discovery.
The law, however, can’t protect you from being sued. So, if you offer products or services to the public, consult with a licensed agent; he or she can help you obtain the exact coverage you need. Fortunately, there’s no statute of limitations on good advice. Contact us today.