If you’re a responsible business owner who has done their research and purchased business insurance for every aspect of their business–Workers Compensation, General Liability, Commercial Auto–you may wonder what Umbrella Insurance is, and if you need it.
Excess Liability or Umbrella Liability Insurance is a coverage that’s intended to provide for instances when the limits of your foundational policies are exceeded. In the unhappy event of a lawsuit against you, if the legal fees exceed the provision of your General Liability policy, this is the addition that would help out.
It’s possible that if there’s one thing that outstrips the frustration business owners feel at having to pay regular premiums for insurance, it’s the fear that all of that insurance might be necessary one day.
If something could surmount that concern…it would be the worry that it wouldn’t cover all of it.
This is where Umbrella Liability Insurance comes in.
Several factors come into play when considering whether Umbrella Liability Insurance is a good investment for your particular business and where it can be most beneficial in your risk management plan.
- Average cost of damages. Different fields have different risks; investigating your segment’s typical court case can help you identify the amount of coverage you need.
- Necessity of staff. One response to unexpected cost, when underinsured, is for businesses to cut staff or expenses. If you run close to the line every month–or can’t afford to do without any of your team–the extra cost of an Umbrella policy could be well worth it.
- Type, location, and size of business. All three of these will affect your need for umbrella insurance, and also the cost of it.
It’s important to note that Umbrella coverage is an extension of liability insurance, but there may be instances when there are limits. Nothing replaces speaking with a professional who can answer questions about your specific business and insurance needs.
Call us today at 1-877-907-5267 for help evaluating or creating your business’s risk management plan. Don’t wait until it’s too late–have enough insurance coverage before an event occurs.