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Business owners put general liability insurance in place to protect against the excessive financial costs of defending claims and lawsuits. Umbrella insurance is designed to provide coverage above the limits of business liability insurance policies. This insurance takes over when your liability insurance limits have been reached.
Businesses, no matter how carefully they manage their operations, can be named in several types of lawsuits. A business may be sued by a customer, employee, or another business. The cost of defending against these legal actions may be higher than the policy limits of your liability insurance. Umbrella insurance adds an extra layer of protection.
Umbrella insurance protects against the same risks as business liability insurance, including:
In today’s litigious society, it is advised that business owners have an umbrella insurance policy for added coverage against legal claims and judgments. If the cost of a negligence claim is higher than the limits of your business insurance, umbrella insurance can be a lifesaver, and protect your company from suffering severe financial losses. If you exceed the limits of your liability insurance, you are forced to pay the rest out-of-pocket.
Several factors are considered in choosing the right umbrella insurance. These factors include:
No policy covers all risks. A business umbrella insurance policy protects against liabilities associated with business activities and business property, just as your other liability insurance. Some risks will require other types of insurance, such as flood insurance, earthquake insurance, or commercial auto insurance. A full review of your existing business insurances will reveal any weaknesses in protection against risk. Our local agents are available to evaluate your current policies and advise you about an umbrella insurance policy.Filed Under: Business Insurance | Tagged With: Business Insurance, Commercial Insurance, Commercial Umbrella Insurance