Why Businesses Need Umbrella Insurance

As long as you own a business, it is important to bear in mind that you are at risk of a lawsuit. As such, it is best to be prepared should this happen.

Most business owners will argue that they have enough general insurance coverage. In most cases, however, general insurance does not entirely cover all the legal fees in the event of a lawsuit. It is for this reason, that business owners are encouraged to take the umbrella insurance coverage, regardless of the size of their business.

What is the business umbrella insurance coverage?

Umbrella insurance is abroad type of coverage. Usually, it is used as supplementary cover in case other policies reach their limits. Business umbrella insurance policies can also be used to fill gaps that other policies did not. Lawsuits tend to be expensive, and should your business face one, you could easily end up facing settlement claims that go beyond your commercial liability coverage. In such a case, a business insurance policy could easily make the difference between your solvency and bankruptcy.

Why you should get a commercial insurance coverage

As we have mentioned above, most business owners will want to rely on their general liability insurance coverage. However, there are certain advantages of getting an umbrella insurance policy alongside your general liability one. Here are a couple of them:

  • Cover for additional liabilities

There are certain liabilities that your general insurance policy may not cover. Damages and losses that are not covered could lead to your business losing so much money. With a business umbrella policy, however, you wouldn’t need to worry about this. The umbrella policy can simply act as the first-dollar coverage and save you a couple of dollars.

  • It easily expands coverage limits

The one thing about umbrella insurance that makes it attractive is the fact that they are so simple. With this cover, you are expanding the coverage limits on your business as well as on those who work for you.

  • Increased protection

Most businesses will have a general insurance coverage policy. However, should your business face a lawsuit, the settlement claims may exceed the limits of your insurance policy. With a commercial insurance policy, you can easily pay off the settlement without using your personal assets.

It is clear that a business umbrella insurance coverage is a good way to protect your business from unexpected risks. To help you decide whether or not to get umbrella insurance coverage, evaluate the risks your business faces and if the general liability policy will cover all damages and losses. If you are not sure about your commercial policy, you are better off having an umbrella insurance coverage. Feel free to call us at 844- 540-0463 and get a quote for business umbrella insurance.

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