Umbrella insurance is defined as a form of insurance that provides extra protection against lawsuits filed against you for alleged property damage or personal injuries.
How does umbrella insurance work? When legal costs consume your available coverage, your umbrella policy provides additional funds up to the limit stated in the policy.
For example, umbrella coverage boosts your insurance safety net for situations such as:
However, umbrella insurance does not cover the following types of claims:
To qualify for umbrella insurance, you need to already own one or more of the following types of small business insurance:
You also have to purchase a minimum amount of the base coverage to get umbrella insurance. For example, an insurance company might require your general liability insurance to have no less than $1 million in coverage before you can buy an umbrella plan.
Small businesses that have a significant need for liability protection, but a limited budget, can benefit from buying umbrella insurance.
However, some companies need umbrella insurance more than others. This includes firms that:
Insureon helps small business owners compare commercial insurance quotes from A-rated U.S. carriers with one easy online application. Start an application today to protect your business against large liability claims.