Every small business owner knows that a single adverse situation is enough to risk all their hard work. You may feel you have the right insurance policy in place, but most policies will cover you only up to a specific limit. An umbrella policy protects you by extending your liability coverage.
Here’s how umbrella insurance helps small businesses:
It Is an Additional Layer of Protection
Umbrella insurance acts as an extension to your existing policies and offers additional coverage beyond the limits of general liability, employer’s liability, and commercial auto insurance. A comprehensive umbrella plan may also cover many things that your underlying policy does not.
Contrary to popular belief, umbrella insurance is not just restricted to larger businesses. In fact, it is ideal for companies that function with higher risks and hold valuable assets.
It Costs Little as Compared to Its Benefits
In an umbrella policy, the monthly premiums are relatively inexpensive as compared to the amount of coverage they offer. This is because umbrella insurance is considered a secondary coverage that will only be utilized when the limits of your general liability coverage are maxed out.
With an umbrella policy, small businesses can afford protection from potentially large financial losses or damages for very low premiums.
It Covers Legal Expenses
When faced with a lawsuit, your general liability coverage will barely be enough to cover settlement costs, not to mention any legal expenses. If you are dealing with high-net-worth clients, the lawsuit settlements associated will be higher if things go wrong. Umbrella insurance is useful in protecting your assets under such circumstances.
These are some of the added benefits that an umbrella insurance policy can bring to a small business. For assistance with all your coverage needs, contact an insurance professional at Westwood Insurance Agency today. We will help you choose the best policy.