General liability insurance helps protect businesses from a wide range of lawsuits, which often includes class action suits. If you run a business in Waterbury, Vermont, here’s why you may want to consider the ways that general liability coverage can protect your company from class action suits — even if you aren’t expecting to face one.

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A General Liability Insurance Policy May Help Protect Your Waterbury, VT Business from Potential Class Action Suits

Almost Any Business Can Face a Class Action Suit

Some businesses are more likely to be named in a class action lawsuit than others, but almost any business can face one. Even a Waterbury, VT small business (not to mention a larger one) may be forced to defend itself against multiple plaintiffs. Essentially, almost any business that has the potential to harm multiple people in some way may be sued by them collectively:

  • A manufacturer may be sued for a defect in their product

  • A food service establishment might be sued if multiple patrons contract food poisoning

  • A tour operator may be sued if all or part of a tour is canceled

Even if the claims of a class action lawsuit aren’t well founded, a business may still face a class action lawsuit. After all, there’s little to prevent someone from trying to sue another person or a company — and if several people have a similar claim against a business, they may band together and create a class action suit.

Class Action Suits Can Be Expensive

For businesses, almost all class action lawsuits are expensive. How much individual plaintiffs receive for a successful suit depends on the severity of the claims, the number of plaintiffs, and other factors. In some cases, they may each only get a few dollars. A few dollars multiplied by many plaintiffs, though, adds up to a large settlement for a business to pay.

General Liability Insurance Waterbury VT


Even if a suit is unsuccessful, it may still be costly for a business. Businesses may have to defend themselves for months or years, and the legal fees associated with suits can add up. Payments for lawyers’ fees, legal expert witnesses’ expenses, and other costs could easily bankrupt many businesses in Vermont if they don’t have protection from these kinds of suits.

General Liability Insurance Helps Protect Waterbury, VT Businesses

General liability insurance typically provides coverage against potentially costly class action suits, and both legal costs and settlements are usually included. Few businesses expect to be charged in a class action lawsuit. For companies that are, though, these protections can be the difference between bankruptcy and continuing to do business.

(Each policy has specific terms, conditions and limits that define the general liability coverage it provides, and you should review the details of any policy you’re considering carefully so that you know precisely what kinds of lawsuits it would provide coverage for).

Get Help Finding General Liability Coverage from a Vermont Insurance Agent

For help finding general liability insurance that will provide robust protection against class action lawsuits, call an independent commercial agent who serves the Waterbury, VT area. A good independent agent who’s licensed in Vermont will be able to compare the general liability coverage offered by different insurers and help you select the one that best fits your particular business’ needs.