Could your business benefit from an umbrella policy?
Business owners don’t need another reason for a sleepless night, but here’s a big one – most businesses are not covered against potentially business-ending lawsuits and catastrophic losses. In our experience, many business owners are concerned about keeping their premiums low to the point where they under-insure their business, leaking large liability risks. What’s more, they fail to understand the importance of an umbrella policy. The reality is that when it comes to protecting any business, umbrella coverage is a necessity.
Here are just a few situations in which business owners should consider an umbrella policy:
You have high-net-worth clients
These types of clients stand to lose a lot from any accident or mistake on your part, and the cost of damages might be more than what the standard liability policy can handle. If a wealthy businesswoman visits you at the office but trips and falls, you could be liable for her medical expenses and lost income from the injury. With added attorney fees and court costs, your general liability insurance limits could easily be reached. An umbrella policy can supplement your coverage, thankfully.
- You have auto liability, employer’s liability, and general liability exposures
If your business is prone to auto, employer’s liability, or general liability claims, you may want umbrella coverage. Umbrella policies are designed to supplement these types of insurance policies, meaning that you can get the most out of your umbrella coverage.
- You don’t want to dip into assets
Perhaps you just want to be cautious and carry extra coverage in case a huge claim does pop up. After all, it only takes one devastating judgment or settlement to bankrupt your business and close its doors for good. Commercial umbrella insurance can prevent you from using personal or business assets to cover an expensive claim.