The Entrepreneur: Mitigating the Risk of Financial Ruin Due to a Personal Injury Claim

“To be successful, you have to be out there; you have to hit the ground running.” – Richard Branson.

Are you an entrepreneur? And, have you started a business that involves manufacturing products from your home garage? Would you like to grow the company until it can financially support yourself and the required number of employees to manufacture, sell, and deliver your products to potential customers drawn from your brand’s target audience?

As the quotation mentioned above by Richard Branson highlights, to be successful, you have to get up every day and keep on working at your business until it has moved from the startup phase into a stable company. And it has an office and a factory where your products are manufactured, sold and delivered to customers.

Managing personal injury claims

This dream is possible and, as noted, very probable if you keep working hard and marketing your business to the correct audience, you will grow. However, there is one crucial caveat that is often ignored and can result in bankruptcy if not attended to correctly.

In other words, how do you mitigate the risk of liquidation due to a personal injury claim as the result of an accident in your home factory?

Succinctly stated, if you do not ensure that you have suitable insurance against personal injury claims, especially when your business is in the startup phase, you could end up being forced into liquidation.  This risk could be from either a potential client or employee who has an accident in your garage both during the product manufacturing cycle or viewing the product to purchase stock.

Furthermore, suffice to say, just taking out personal injury insurance is not enough. You need to ensure that your business is properly represented by a legal expert like a Ventura, CA injury lawyer. The harsh reality is that there will be personal injury lawsuits brought against your company that are not an accurate representation of the actual incident that occurred.

Statistics show that over eight million hospital emergency room visits were caused by slip and fall accidents. Additionally, slip and fall accidents are the leading cause of all ER visits. Thus, not only is it essential to ensure that you install non-slip flooring in your home garage, but it is also critical to make sure that you are adequately represented, and you have adequate insurance.

The relative cost of personal injury insurance

One of the most important questions that needs an answer: Is what is the cost of personal injury insurance?

The article titled “Typical Costs for Liability Insurance for Small Businesses” reiterates the importance of ensuring that your business has a liability insurance cover. It also highlights the fact, once again, that this insurance cover is vital to protect the business and owners from the costs of unexpected accidents that could potentially ruin the company.

And finally, the median annual cost of liability insurance starts at about $500 (USD). On the other hand, the maximum price can work out to circa several thousand dollars per annum. If we look at the minimum amount of $500, it works out to about $48 per month.

And, if we assume that the top end of the scale insurance costs about $6000 per annum, it works out to $500 per month. At the outset, these figures may seem considerable; however, when you look at the average claim payout of about $53 000, the monthly premiums are incredibly reasonable.

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