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Do I Need Umbrella Insurance for My Business?

Umbrella Insurance for Your Business

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.

Please note: All coverages are subject to conditions, coverage limits, limits of liability, limitations, and exclusions as contained in the policy.

6 Additional Insurance Coverages for Complete Protection of Your Cleaning and Maintenance Service Business

 

Additional Insurance Coverages for Protecting Cleaning and Maintenance Service BusinessesYour cleaning or maintenance service business could be vulnerable to a costly claim if you’re only insured with basic coverage.  While the insurance policies listed in last week’s “4 Fundamental Insurance Policies…” article strengthen the foundation of a small business, additional insurance can provide comprehensive protection that your business may need to avoid a financial mess.  This extra coverage can fill in gaps where your business would not otherwise be financially protected.

Below we describe six additional business insurance coverages to consider for more comprehensive protection of your cleaning and maintenance service business.

Umbrella Liability

When your general liability, auto liability, or other liability insurance limit is only enough to cover part of a costly claim, an umbrella insurance policy is there to help with the remaining costs.  An auto accident caused by your employee in the company van, for example, results in claim settlement and defense costs of $2 million.  If your auto liability policy only covers $1 million of this total cost, the umbrella insurance coverage is there to pay the remaining $1 million.

Inland Marine

If your cleaning equipment, computer systems, or other property used in your operations are frequently moved from jobsite to jobsite, an inland marine insurance policy could keep your business afloat.  While a property insurance policy may only provide coverage for limited types of tools and equipment that are damaged within a certain distance from your designated business location, an inland marine policy will cover tools and equipment that are damaged further away from your premises.

Crime Coverage

Crime against your business can happen when least expected, robbing your business of serious money. To be prepared, a crime insurance policy covers employee theft, forgery/alteration, and loss of money or securities on and off premises.

ISO Janitorial Services Endorsement

Covering a broad range of risks, NIP Group’s add-on ISO janitorial services endorsement includes several coverage enhancements for more complete protection. Coverage includes key and lock replacement if a customer key is accidentally lost, theft of client property, property damage due to your work, damage to client property in your custody and care, and much more.

Blanket Additional Insured

If customers are requesting a certificate naming them as an additional insured on your insurance policies, blanket additional insured could save you time and unnecessary expenses.  This automatically extends “Additional Insured” status to your customers without the paperwork and potential fees each time it is needed.

Business Income – Dependent Properties

When income is lost from damages to client or other non-owned property, business income for dependent properties will cover your loss.  For example, if a school that you have a janitorial contract with has a massive fire that prevents you from performing work and getting paid, having the available business income for dependent properties coverage will cover income lost during that time period.

To choose the insurance coverages that will best protect your cleaning or maintenance service, it’s important to first recognize the risks your business faces.  After identifying these risks, review your current insurance policies so you know exactly what is covered and if these terms cover all of the areas where your business is vulnerable to a claim.

Need more than just basic insurance to cover all of the risks of your business?  NIP Group’s MaintenancePro insurance program offers cleaning and maintenance service businesses both fundamental and additional insurance policies that can be custom-tailored to your business needs.  Contact your insurance broker or visit www.nipgroup.com/programs/maintenancepro for more information.

Please note: All coverages are subject to conditions, coverage limits, limits of liability, limitations, and exclusions as contained in the policy.

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4 Fundamental Insurance Policies that Protect Cleaning and Maintenance Service Businesses