One of the great fears of running a business is being hit with a lawsuit. You’ve probably looked into coverage for a number of common issues, but many times it’s the abnormal that can bankrupt a perfectly good company. Commercial insurance can cover almost any eventuality if you optimize your coverage, but for a number of reasons, these three cases were not covered and got out of hand quickly.
Blitz is a company that specialized in making handheld gas cans. In fact, they were the biggest manufacturer in the U.S. In 2012 they had to file bankruptcy and eventually close the business because of a little over 30 lawsuits all with the same claim: pouring gas from their cans onto a burning fire caused explosions. While one might think that pouring gasoline on a burning fire is a dangerous activity, the company was still held liable for an average of $4 million per case. The totals were too much and the company is no more.
Garcia vs Ledraplastic
Francisco Garcia and the Sacramento Kings famously sued Ledraplastic. He was exercising with one of their balancing balls when it burst, causing him to break his forearm and miss playtime with the NBA team. The large player was lifting 90-pound weights in each hand while balancing. It is unclear whether or not he exceeded the manufacturer’s listed weight limits, but the suit was settled for an undisclosed amount that most suspect was in the tens of millions.
Broward County Bus
Ursula Wilson was riding the public transit when the driver had to slam the brakes and caused her to collide violently with the bus floor. She sued the county for the driver’s alleged negligence for $100,000 to cover medical expenses. Video shows that the driver was using one hand to eat a beef patty when the incident occurred, and ultimately the county settled the case.
In each of these cases, large sums had to be paid out of pocket. In one case it closed a business, and in another it came out of taxpayer pockets. Unbelievable lawsuits can threaten any company, so talk with Mid Atlantic Insurance Financial to make sure you are covered against the unexpected.