As a business owner, you will know that your liability insurance covers you when another party sues you for damages you or your company are responsible for. Without liability insurance, you risk losing your business, assets, vehicles, and more. Liability coverage is a must, but you may be wondering if you need extra liability insurance in the form of an umbrella policy as a small business.
Umbrella Coverage for a Small Business
Liability coverage you already have may include general liability, employers liability, or hired and non-owned auto liability. A commercial umbrella insurance policy’s main function is to extend this liability coverage. Say a bad accident happens and you file a claim and cash in on your liability coverage. However, the damage is so extensive that the total costs exceed your coverage. Either you would have to pay these costs out of pocket or your umbrella insurance policy would pick up the pieces.
A typical minimum coverage amount for umbrella insurance for a small business is one million dollars – often double what you would get with your other policies. Every small business can benefit from having such coverage, especially because you never know when disaster may strike. If you deal with high-net-worth individuals in your business, umbrella insurance is particularly useful in covering higher lawsuit settlements.
In addition to covering your settlement costs, commercial umbrella insurance will cover your legal expenses – something that regular liability does not cover. As any business owner will know, legal expenses can be significant, especially for smaller businesses with a tight budget.
An umbrella insurance policy can help your small business through tough times. Let us help you find the right business insurance solutions that meet your needs and budget. Talk to the team at Kneller Agency today to get started.
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