Ways to Protect Your Business From Consumer Litigation and Other Threats
Acknowledging Surge In Claims As An Emerging Trend
According to Suzanne, there has been a considerable uptick in the number of claims over the past three years by a staggering 50%! Many businesses struggle to keep up with their obligations as they deal with this remarkable challenge.
Several consumer behavioral issues are now creating a pattern. The frequency of individuals seeking refunds is increasing, and it’s often based on dissatisfaction with the result of their treatment rather than practitioner error. Consumers are becoming crafty with their terminology and are quite strategic (abusive at times), attacking practitioners and demanding refunds and damages even for unrealistic situations. Being in a position like this can be traumatic for business owners and result in a growing fear that everyone is out to get them, which can disrupt their focus on running their business effectively.
Businesses must be aware and acknowledge that this is a current trend so they can develop a proactive approach to mitigating risks.
Developing a Strong Risk Management Strategy
Another critical aspect of protecting businesses is to develop a robust risk management strategy, which involves identifying potential sources of liability and taking steps to alleviate those risks. Some of the effective ways to do this are employee training, adopting updated policies and processes, and investing in technology that helps automate compliance procedures.
Understanding The Importance of Adequate Insurance Coverage
One of the most effective ways to protect a business from consumer litigation and the surge in claims is to have appropriate insurance coverage. However, Suzanne notes that not all insurance policies are created equal, and businesses must be diligent in ensuring they have the right coverage. Speaking with a trusted insurance broker and ensuring appropriate coverage is vital to avoid expensive litigation costs.
For example, if a company introduces new technology, like lasers or IPL, since initially obtaining coverage, it is crucial to inform your brokers or insurance providers so it can be added to the policy. Another essential aspect of reducing risk is ensuring proper training and certification for the procedures being performed.
Being Honest With Insurance Brokers/Providers
In her years within the insurance brokerage industry, Suzanne would argue that one significant issue that puts businesses at risk is cutting corners by not fully disclosing all the procedures they offer. This can put them in danger if a claim arises for a treatment not covered by their policy.
Regularly Reviewing Policy and Adding Extra Coverage if Necessary
In some instances, expanding the coverage may be the most appropriate step to enhance the security for business owners. In the case of the recent lockdowns, landlord disputes have become increasingly prevalent. In response to these challenges, Sparrow Insurance has introduced two new supplementary covers for businesses – one offering an extra $25,000 in coverage for landlord disagreements and another focusing on cybercrime protection. A security breach can lead to the loss of crucial data, causing disruption and financial damage. As part of our ongoing commitment to supporting business owners, we continually evaluate emerging risks and seek ways to incorporate additional safeguards into our offerings.
Protection Should Always Be A Priority
The increase in consumer litigation during and after the pandemic highlights the need for businesses to be proactive in identifying and addressing potential risks at all times.
Take the time to review your business practices and ensure that you have the right coverage and policies in place to safeguard your interests.
Seeking expert advice from a trusted insurance broker can help businesses navigate the complex and changing legal landscape that has emerged since the pandemic. By seeking expert guidance, businesses can stay informed about the latest trends and developments and work towards protecting themselves from unexpected legal action.
Sparrow Insurance is committed to helping businesses stay protected by providing the most comprehensive insurance solutions. If you need some guidance on safeguarding your business and your peace of mind, feel free to contact us.