No one wants to have to deal with a claim for a loss. Unfortunately, as a business becomes more successful over time, at some point it will run into a situation where the client is unhappy with how he was treated and will want a recovery. Ironically, the more successful a company is, the higher the probability a claim will eventually occur. This definitely applies to businesses in Pismo Beach, CA and elsewhere in the golden state.
However, there’s a key difference between a claim for a general injury and one related to a contractual obligation, and this is where a lot of confusion occurs both on the business side as well as the client. In a nutshell, a general injury in the legal world is known as a tort. A claim based on a contract is known as a contract breach. The tort legally has in many regions and jurisdictions a short period of time to file a claim (usually one year). A contract claim, on the other hand, is often three to five years, depending on the state. That time difference (known as a statute of limitations) can big a big issue for a company’s finances and the type of policy it chooses for coverage. It’s also one of the primary areas where new companies choose the wrong type of coverage and find out the hard way when the claim arrives.
To clear up the confusion for those in the Pismo Beach, CA area, Neff & Associates Insurance Services Inc are available by phone, email or in-person visit to discuss. Don’t hesitate to ask and find out a tort versus contract difference can impact your company if not prepared for. The staff at Neff & Associates Insurance Services Inc have seen these situations before and can provide valuable case studies where mistakes in coverage resulted in painful, hard lessons.