Summary
Read examples that demonstrate how without the right insurance coverage in place, a single unexpected event can become a financial crisis for a business.
Without the right insurance coverage in place, a single unexpected event can become a financial crisis for a business. A workplace injury, employment-related lawsuit, property damage claim, or professional liability dispute can quickly lead to legal fees, settlements, regulatory penalties, and reputational harm. Many business owners assume their general liability policy covers “everything,” only to discover costly gaps when a claim arises. The true cost isn’t just the premium — it’s the risk of being underinsured when it matters most. The following examples show that having the proper mix of coverages in place isn’t just about compliance; it’s about protecting cash flow, safeguarding your people, and ensuring your business can continue operating when challenges arise.
1. Jury Awards Widow $44 Million After Husband Is Killed in Highway Pileup—Auto Liability
A woman received a $44 million jury award after her husband was killed in a highway pileup in 2021. The victim was driving on Interstate Highway 35 during an ice storm when he stopped because of crashes ahead. While stopped, the man was rear-ended by a commercial truck driver. The lawsuit alleged that the truck driver had not received training for driving in winter weather and failed to exercise caution in the hazardous conditions. The plaintiff’s attorney also argued that the driver was speeding prior to the crash. The jury awarded the victim’s widow $24.1 million in compensatory damages and $20 million in punitive damages. The jury apportioned 75% of the liability to the commercial truck driver, for whom the driver’s employer bears legal responsibility. The remaining 25% was assigned to the private operator responsible for the toll lanes due to inadequate road monitoring and de-icing processes.
2. Woman Terminated From Her Job Awarded $103 Million in Age Discrimination Trial—Employment Practices Liability (EPLI)
A Los Angeles jury has awarded a woman $103 million after finding she was unfairly terminated from her job. The worker, who worked for the company for more than 30 years, had been granted short-term disability leave to manage a blood pressure condition her doctor linked to workplace stress. Upon her return, her parking card and access badge no longer functioned, and she was fired without reason. The lawsuit alleged the company violated California’s Fair Employment and Housing Act by discriminating against her based on age. Court filings further claimed that multiple employees in their 50s and 60s were forced to resign following a leadership change. The plaintiff was awarded $83 million in punitive damages, $15 million for past noneconomic losses and $5 million for future noneconomic losses.
3. Jury Awards Former Police Officer $8.4 Million in Reverse Discrimination Case—EPLI
A jury has awarded $8.4 million to a former police officer in La Palma, California, as a result of a reverse discrimination lawsuit brought against the City of La Palma. According to the lawsuit, the officer, who is white, faced retaliation and disparate treatment following his reassignment to a different sergeant. The sergeant, who was Korean American, routinely favored a Korean officer and gave the plaintiff a heavier workload, according to court filings. Two other white officers had previously raised similar concerns, which the plaintiff’s attorneys argued demonstrated an ongoing pattern of discrimination. The city was found liable for $3.92 million in past and $4.48 million in future noneconomic damages.
4. Man Injured by Construction Zone Debris Awarded $15.5 Million—Liability
A New Jersey man received a $15.5 million jury award after he was seriously injured while driving through a construction zone. A construction worker was using heavy machinery to cut down and gather trees when they unexpectedly hit a metal clamp in the ground, sending it airborne and through the plaintiff’s vehicle, where it struck him. The plaintiff suffered a traumatic brain injury and three spinal fractures. According to the lawsuit, the construction company lacked both a traffic control plan and trained flaggers at the construction site. The jury apportioned 90% of the liability to the construction company and 10% to a land management firm for failing to ensure the ground was free from debris. The plaintiff was awarded $3 million for past suffering, $9 million for future pain and suffering, and $3.5 million for future lost wages.
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Insurance Coverage to Fit Your Business
Whether you run a small business or a mid-size company, it’s essential that you operate with the right insurance and the right amount of insurance for your needs.
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