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Immediate Medical Expense Coverage is the Key to the Insurance Industry’s Psychology

Immediate Medical Expense Coverage is the Key to the Insurance Industry’s Psychology

Thursday, February 18, 2016/Categories: general-liability-insurance

Let’s play a game of “Would You Rather.”

Would you rather…

  • Definitely pay $500 now?
  • Probably pay $2500 later?

Unless you love the thrill of playing the odds, you would probably pay the $500 now, right?

That’s the type of question insurance companies ask themselves all the time when dealing with certain claims. They weigh the odds and try to find the solution that will cost the least amount of money. That’s how the industry functions. And it’s the reason why your General Liability Insurance is designed to cover immediate medical costs following a third-party injury.

What Happens When a Customer is Injured?

Say an insurance company provides General Liability Insurance for a computer repair store. A customer visits the store and slips on an icy patch of sidewalk just outside the door. The customer is clearly injured.

An event like this has a variety of possible outcomes:

Outcome A: The injured customer is ignored by the store staff. Nobody bothers to help him, even when he complains to the manager.

The customer may…

  • Shrug everything off and forget about the whole thing.
  • Be very angry, go to the doctor, have to pay a fortune in medical bills, and then decide to sue the computer store because they did nothing to help him.

Outcome B: The store owner or her staff attends to the customer, documents the accident, and offers to pay for all his immediate medical costs with their insurance. They call an ambulance and rush him to urgent care.

The customer may…

  • Be angry at the store for allowing the accident to happen and still decide to sue for his injuries.
  • Be grateful for the help (and the fact he doesn’t have to pay for the medical costs) and decide not to sue the store.

In the above scenario, attending to the injured customer and paying for his medical costs is the likeliest way to reach the most favorable outcome: not being sued. Although the ambulance and the medical bills will cost a fair amount of money upfront, it is chump change compared with the cost of defending against a lawsuit.

An Ounce of Prevention is Worth a Pound of Cure

Consider everything you and your insurance company might have to pay for to defend against a lawsuit:

  • Attorney fees.
  • Court fees.
  • The plaintiff’s damages, which could include lost wages and disability pay on top of medical bills.

If there’s a chance to avoid these expenses, you should take that chance. Paying for a little prevention can avert a costly headache later on. Plus, it’s just the nice thing to do, right? If a customer is injured at your place of business, doing all you can to help them is not only smart, it’s courteous and kind. The customer will keep that in mind. Remember, the decision to sue is often fueled by emotion as much as anything else.

Learn more about the cost of General Liability Insurance or check out other types of technology liability insurance. Proactive risk-management can save you a lot of money and a lot of time later on.

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