Benefits of Commercial Umbrella Insurance
You want to enjoy a nice vacation every once in a while, right? Work to live, not live to work, as they say. You want to feel the sand between your toes, you want to smell the surf in the air, you want to sip on a nice, cold, refreshingly strong alcoholic beverage with little fruit garnishes on the glass — but you can't. Your business faced a costly lawsuit and you didn't have Umbrella Insurance to help when you reached your primary liability policy's limit. Now you're stuck in the office trying to find the finances to pay off the legal settlement while the rest of your family wonders if they'll ever see the ocean again.
Hopefully that scenario never happens to you. For many small businesses, a Commercial General Liability policy is enough protection for most everyday lawsuits (provided you don't face a new lawsuit every day!). But sometimes you might need the comfort of increased liability coverage at an affordable price. You want to be sure you can afford that all-inclusive trip to Cancun, after all.
If your business deals with high-value clients or you want additional coverage for one or more of your liability policies, Umbrella Insurance might be a cost-effective option for protecting your business's assets.
How Does Umbrella Insurance Work?
Umbrella Liability Insurance acts as a sort of spillover coverage for liability claims, taking effect when the limit of the underlying liability policy is reached. It can take effect when the per-occurrence limit is met, or when a claim or claims meet the aggregate limit of a policy. You can apply Umbrella coverage to the following policies:
Say, for example, that your business specializes in bathroom remodeling for wealthy clients. If a client is injured on the worksite and sues your business for medical expenses and lost wages, you may face a lawsuit that exceeds your General Liability limits (because the wages lost for a client with a high-paying job may be enormous). If you have Umbrella Liability Insurance, it can pay for the rest of the claim after the primary policy's per-claim limit is reached (up to the Umbrella policy's limit).
If your business faces multiple lawsuits that exceed the total limit of the liability policy, the Umbrella policy can cover what the underlying policy won't.
It's important to note that Umbrella Insurance can be applied to multiple types of claims, whether it is a General Liability claim or a Hired and Non-Owned Auto Liability claim. This way, it can bolster the protection you get without your having to raise the limits of each individual policy.
For more information, check out "What Does Commercial Umbrella Insurance Cover?"
Umbrella Liability Insurance Is Cost-Effective for Small Businesses
An Umbrella Liability Insurance policy is an affordable way to reinforce your liability coverage. Most Umbrella policies cost only a few hundred dollars a year for millions more in coverage. (Find more detailed Umbrellan Insurance cost information here.) To get the same protection without an Umbrella policy, you'd have to raise the limits of your primary liability policies, which would result in markedly higher premiums.
In a way, an Umbrella policy is insurance for your liability insurance, ready to help out once your liability coverage can't do any more. Even if your business faces a lawsuit in which you're found not liable, the expenses surrounding a lawsuit itself can quickly add up and exhaust your primary liability policy. Court fees, legal teams, and other associated costs can be just as damaging to a business without adequate coverage. An Umbrella policy may be a lot cheaper than paying for legal expenses out of your own pocket.
So if your business faces increased risk for costly lawsuits, or if you simply want more security for liability claims, consider purchasing an Umbrella Liability Insurance policy. Fill out an application with Insureon to receive multiple free quotes, or contact an agent to discuss policy options.
You deserve to relax every now and then. Make sure you can afford to do so. The surf is calling…