Indemnification versus Defense Obligations

Indemnification is the obligation to pay another for a future liability that might arise. When included in a commercial contract, this usually includes coverage of liability in the form of actual damages or losses such as having to pay a third party. In addition, such provisions often include coverage for liability in the form of defense costs, i.e., the cost of dealing with a third party claim even if there is no ultimate liability to the third party. Notably, in […]

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Insurance for the Business: Other Insurance

In addition to Business operation policies discussed last time, there are several other types of insurance a business should consider.

Business Interruption

When a business suffers a loss due to a fire, flood, or other accident, the property insurance will cover the lost property, but the business is going to be shut down until the property is replaced and the business can open again.  This insurance will provide lost profits, costs, and salaries during the shut down.  How much to get depends […]

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Insurance for the Business

In previous discussions regarding running a business out of your home, we highlighted insurance issues that should be addressed.  This post goes into a little more detail on these issues.

Finding Business Insurance

The first step is to find a source for business insurance.  It is generally best to work with an insurance agent who represents multiple insurance companies so they can help you to find the best insurance policies, at the best price, for the particular needs you have.  You should […]

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Owning Your Own Business-Insurance Issues

I previously addressed the question of disability insurance in my article “Your Company and Disability Planning” on June 20, 2012.  In addition to disability insurance for the owner and/or employees, a business should consider other forms of insurance as a part of its operation. Of primary importance is general liability and business operations coverage which addresses normal liabilities such as accidents and property damage.  This kind of insurance can also cover important papers, employee theft, and can potentially cover lost […]

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Set-offs, Subrogation, and the Collateral Source Rule

The Colorado Supreme Court clarified one of the applications of the collateral source rule in its recent ruling of Ferrellgas, Inc. v. Yeiser, Case No. 08SC997, (Colo. Feb. 28, 2011).

The collateral source rule is a hard to understand rule about when payments from a collateral source can, or cannot, be set-off from an award made to a plaintiff.  In civil actions, C.R.S. Section 13-21-111.6 applies.  In general, a court will reduce the amount of an award by the amount that […]

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