People looking for a payday aren’t as apt to go after larger businesses, because they know that they have the attorneys to keep litigation tied up in court for years, while small business owners don’t have that kind of time. They do not have the abilities or means to keep a line of litigation going and will in most cases settle out of court, even if they know that the facts would support them. If I am going to pay one hundred thousand dollars either to you, or to go to trial, why not just go ahead and get it over with?
People who go after companies in this way are very sophisticated, and understand the vagaries of the way the system works. Facing these “barbarian hordes”, if you will, without the shield of the proper general liability or professional liability insurance in place is possibly the highest level of foolhardiness. Preparation is the key in any effective endeavor, and that preparation for a small business owner starts at insurance, be it professional or general liability small business insurance. If you take the time necessary to effectively deal with it, and this will always involve a good insurance agent, it will pay you dividends for decades by keeping your doors open through troubled times.