Liability insurance
August 20, 2008 7:14 am BusinessWhat is needed in today’s litigious climate is a certain amount of personal responsibility - take the case of the woman who sued because she spilled her coffee in her lap and suffered burns as a result. Whose fault was it? Well, the claim was made that the company should have warned her that the coffee was hot - how ridiculous is that?
directors liability insurance can and should cover acts of error and omission on the part of the company or its employees, directors or officers; but it does not mean that the company should pay for someone’s inattentiveness and greed.
Now, I can see where the liability insurance would have covered, let’s say, an employee of this company who might take a notion to walk over to a customer and pour a pot of this hot coffee over the customer’s head - that would be compensable, indeed. But pay a claim because a customer can’t remember if the coffee was hot? Not on my watch!