You have insurance already, so do you really need an extra layer of coverage? When you look at your assets whether it be your home or your business it’s important to consider what’s at risk if you were to suffer a significant loss. Before we examine some examples lets explain what umbrella coverage is and when it would be needed.
What is umbrella coverage?
Insurance companies will describe an umbrella as a supplement. Now you’re probably thinking, what is that? A supplement is additional money that is needed to cover a significant loss. If a loss exhausts your basic liability limits the umbrella policy will serve as an extra layer of coverage.
Some of the following basic liability policies can have an umbrella added onto the basic coverage
How much should I carry on my policy?
In order to determine the amount of coverage to include on your policy for an umbrella you want a good understanding of what risks you face. This should be considered for both personal and business policies.
For instance let’s say your business brings in a lot of foot traffic and a patron suffer’s a slip and fall. As a result they really hurt themselves and file a lawsuit against your business. Because of a simple slip and fall incident as the business owner your assets, business and reputation could be at risk in addition to the potential loss of future income.
When evaluating how much coverage to include on your umbrella policy keep three things in mind:
- Your current liability limits
- The value of your assets
- What risks you face
Why is umbrella coverage important for business owners to have?
If your business suffers a loss so substantial, what will you do in the event a claim exceeds the underlying general liability limits? That’s where an umbrella policy for your business or more commonly known as a “commercial umbrella” policy will be put to use.
For example lets say you manage a contracting company and your liability limit is $2,000,000. While working on a project one day an accident takes place and damages are expected to be more than $3,000,000!!!
Without a commercial umbrella policy in place your business operations will be at risk to continue moving forward. Commercial umbrella policies serve as a layer of protection in the event of the following:
- Temporary shutdown of operations
- Loss of income
Don’t leave your home, car or business to chance! Take a look at what’s at stake to determine how an umbrella policy can protect your biggest assets!
Feel free to contact us @ 631-224-1000 with any insurance needs both for your business and personal lines. Our friendly office staff will be happy to provide you with a FREE quote, research coverage options and address any concerns you have. We encourage our readers to post in the comments section. It allows us to improve the quality of our blog, connect with our audience and address your insurance concerns. Be sure to follow us on social media as well, by clicking the icons below!