Just as with personal umbrella insurance, a business umbrella policy picks up where your business auto liability, general liability or other liability coverage stops. Umbrella insurance is an economical way to provide extra coverage against bodily injury and/or property damage. This insurance adds additional coverage beyond the amounts available in your company’s underlying policies and it stipulates certain levels of coverage on your company’s various primary insurance policies.
A lawsuit can happen to any business. An employee driving their own car to a meeting accidentally rear ends another car, a patron slips and falls and injures themselves while exiting your establishment, an advertisement lists the wrong phone number, causing annoying calls to an unrelated business, and you get sued.
A business umbrella policy can give you peace of mind by providing increased limits of financial protection to your business from these unexpected risks. And, it’s surprisingly affordable. That’s because the underlying liability policy limits are used first and your commercial umbrella coverage only kicks in after those policies have exhausted their limits.
The main benefit of purchasing a business umbrella insurance policy, rather than opting for higher limits on your individual policies, is that a business umbrella tends to be more cost-effective. You can spend less on premium payments to enjoy significantly greater insurance protection. You may be able to protect more of your assets by investing in an umbrella policy than you would with just liability insurance policies. If you face a legal settlement for an amount above the limits of your standard insurance, an umbrella policy could protect you from draining your bank account and selling your assets to cover the cost, which could ultimately put you out of business.
A business umbrella policy only provides extended coverage to your liability policies. It’s important to note that an umbrella policy will not extend coverage limits on an errors and omissions or professional liability policy.
No matter how well you manage your business, a catastrophe can still occur. And, depending on the circumstances, the resultant claims against your business can far exceed your planned liability insurance coverage. The knowledgeable professionals at Boizelle Insurance Partnership are always happy to review your existing policy and/or discuss business umbrella insurance policy options.