My dad’s best friend, Adam, started a wood shop business back when I was in middle school. He had always tinkered with the idea and often made furniture and crafts for people in the community. After getting laid off from his truck driving job, he just announced that he was going to start the business one day. There is a big old garage on his property, with plenty of space for customers to park, that he decided to operate out of. He let his wife handle the business side of things. This includes answering phones, banking and keeping licenses and polices up to date, including his personal public liability insurance policy.
One day he was in the shop with a customer and a piece of wood he was cutting flew right off the machine and struck the guy square in the head. He was bleeding and an ambulance was called. Adam’s wife was out of state visiting her mother for the winter when it happened. So, a few weeks later when Adam was sued for the hospital bills, he thought it was the end of his business and that the family was going to be bankrupt. He had no idea that the business has a liability policy, or he just might have been correct.