If a client sues your business or an employee causes a devastating car accident, will your current insurance policy cover the settlement and defense costs? If not, your business could be in serious financial trouble.
With lawsuits and claims occurring more frequently, an umbrella insurance policy can be the safety net to keep your business out of financial harm. This coverage pays the remaining costs of a claim when your primary insurance limits are exhausted. For example, you’re hit with lawsuit settlement and defense costs of $1.5 million after your employee driving the company van strikes another vehicle. If your auto liability policy only covers $1 million of this cost, the umbrella insurance will pay the outstanding $500,000.
Advantages of Commercial Umbrella Insurance
An umbrella insurance policy offers benefits that your primary liability insurance policies can’t provide.
Affordable, high coverage limit. For only a few hundred dollars a year, you can have $1 million in umbrella insurance. This coverage is available in increments of $1 million and comes with low premium payments.
More protection. Umbrella insurance is there to back you up financially when your primary liability insurance isn’t enough to cover the costs of lost assets, bodily injuries, legal fees, and more. This extra coverage better protects your business from financial loss, particularly when hit with a costly lawsuit.
Cost savings. A single umbrella insurance policy extends the coverage limits on multiple liability policies – and for a lower premium, too! Instead of paying to increase the coverage limits on each of your general liability and auto liability policies, for example, one umbrella insurance policy gets you extra coverage on both of these liability policies. And, if hit with a costly lawsuit that your primary insurance policy can’t fully cover, umbrella insurance saves you money by paying the outstanding costs.
To decide how much umbrella insurance coverage is needed for your business, identify the risks your business faces and any assets that would be covered under this policy. Then, review your current insurance coverages to determine if these terms cover all of the areas where your business is vulnerable to a claim.
Knowing this information helps you better determine the umbrella insurance coverage limits required to keep your business out of financial harm. Your insurance broker can answer questions regarding insurance options and get you coverage specific to your business needs.
Looking for an umbrella insurance policy that will save you money and provide more protection for your business? Check out NIP Group’s business insurance programs that include umbrella insurance and other coverages specific to your needs by visiting http://www.nipgroup.com/programs.