Disney Restaurant Lawsuit and the Importance of Liability Insurance

Disney is battling a wrongful death lawsuit after a woman who ate at a Disney Springs restaurant died, allegedly following an allergic reaction to her food. The suit claims that the woman told the server about her severe food allergies and that the server guaranteed the food was allergen-free. Now the deceased woman’s husband is seeking over $50,000 in damages.

A wrongful death allegation can be disastrous for any business, causing financial losses and reputational harm. As the Disney case proceeds to court, the decision could go either way and the resulting award amount is anyone’s guess in this age of eye-popping verdicts.

A food allergy is just one of many wrongful death incidents that could impact your business. Proper liability insurance coupled with risk management strategies can help protect you from this exposure.

Why You’re at Risk of a Wrongful Death Allegation

In a wrongful death case, a company or individual is alleged to have acted or failed to act in a way that causes or contributes to a person’s death. The deceased’s survivors filed a lawsuit with the intent to obtain financial compensation.

While any business could face a wrongful death lawsuit, operational factors like the following make it more likely:

• You have employees who drive as part of their job. Many companies don’t realize they’re at risk for a commercial auto liability lawsuit even if they don’t provide company vehicles. If an employee causes a motor vehicle crash that results in a fatality while driving a personal or rental vehicle in the course of company business, you can be held liable for their actions.
• You provide healthcare services of any type. Medical malpractice is a common cause of wrongful death allegations, and anyone who provides healthcare services (not just doctors) could be found at fault.
• You manufacture or distribute physical products. Health supplements and products designed for babies or children carry especially high risk, but any product has the potential for liability exposure.
• Your employees perform work that increases their odds of an accident. Construction, manufacturing, and transportation are just a few of the industries where workers are at higher-than-average risk of a workplace accident.
• You sell or serve food or beverages. Restaurants, bars, hotels, and other hospitality businesses are open to wrongful death exposure.

Protecting Your Assets with the Right Liability Insurance

While the damages sought in the Disney lawsuit are relatively low, it’s common for a wrongful death matter to result in a settlement or award in the tens of millions of dollars. The frequency and severity of these allegations make it essential to protect your business with proper liability insurance.

Wrongful death could fall under one of several different policies, depending on the type of incident. For example, your commercial auto insurance policy would respond in the event of a covered motor vehicle crash that results in a fatality. If you own an office building and faulty equipment causes an occupant’s death, the claim will fall under your general liability (GL) policy. And medical malpractice claims are covered under a professional liability policy.

However, the limits available on these primary policies are rarely sufficient. Settlements and jury awards are escalating thanks to aggressive law firm advertising, trial tactics that play on emotions, a rise in third parties funding lawsuits, and anti-corporate sentiment. These realities make it essential to add an excess or umbrella liability policy to your business insurance program. If the limits on your GL, commercial auto, or other relevant primary policy are exhausted, the commercial umbrella or excess liability policy provides additional coverage.

To ensure sufficient business liability insurance, keep your independent insurance advisor up to date on your operations. They’ll recommend the best coverage based on the nature of your business and confirm you’ve disclosed all relevant details to the insurer to reduce the risk of an uncovered claim. Your advisor will also pay close attention to policy exclusions and help you determine the proper amount of excess or umbrella liability coverage for your needs.

Risk Management Reduces Liability Risk

To succeed, a wrongful death lawsuit must show negligence or intent. That makes it critical to combine the right liability coverage to protect your business with risk management strategies that help mitigate your exposure. The most appropriate risk management practices for your business will depend on your industry and type of business.

For example, in the restaurant industry, proper training on food allergens and disclaimers on menus can limit exposure. For product manufacturers, risk management might involve adding warnings on packaging or responding promptly to potential safety concerns by issuing a product recall. And if your employees ever drive in the course of their work, periodic driver safety training is essential. These are just a few of the many ways a business can reduce wrongful death risk and minimize the odds of a successful claim.

Turn to B. F. Saul Insurance for Liability Protection

The Disney Springs restaurant lawsuit is an eye-opening illustration of why your business needs proper business liability insurance, including an excess or umbrella liability policy. The commercial insurance specialists at B. F. Saul Insurance have extensive experience advising organizations on how to reduce liability risk and obtain sufficient insurance, so we’re the right partner to help you navigate this exposure.

Schedule a call with an independent insurance advisor to learn how we can help protect your business with the right commercial liability insurance.