A business needs a rather long list of commercial insurance coverages to ensure the business is properly protected. Depending on the nature of the business it can have around seven or more different types of coverages. With so many insurance policies, you may feel that your business is secured, but is it really? In reality a business can never have too much coverage. One policy that is frequently questioned is umbrella insurance. Does a business really need umbrella insurance? Today, Signet Insurance Group would like to go over umbrella insurance and why every business should have this additional protection policy.
What Does Umbrella Insurance Do?
Umbrella coverage provides additional protection for a business. When unexpected events occur that exceeds the primary insurance’s limits, you are left digging into your own pocket or that of the business. A business can easily find themselves deep in a multi-million dollar lawsuit from a liability claim, employee auto accidents, and other common scenarios. This is where umbrella insurance can help. Umbrella insurance applies in a number of different scenarios and helps to pick up the bill when your primary insurance reaches its limit. Umbrella insurance is a supplemental policy, not a standalone policy. It is surprisingly a very affordable addition to your business insurance coverage. Liability is simply part of owning and running a business. Every business owner should always be prepared for the worst and have all of the protection they can get. Having umbrella insurance can help give you the peace of mind you need. However, if you are not convinced, here are the top reasons why a business needs umbrella insurance.
• Higher Risk of Bankruptcy – A business that doesn’t have umbrella insurance has a much higher risk of going bankrupt. Especially if a business is in a litigation-prone industry. Just one large jury award could quickly put you out of business if it exceeds your current policy’s limits.
• Customer Requirement – Depending on the nature of the business, sometimes the customers may require umbrella insurance. Meaning, if you have a business, such as a water theme park, roller coaster park or other activities that could potentially injure guest, you will want to have umbrella insurance to ensure you are properly covered.
• The Business is Inherently Dangerous – For manufactures, contractors and construction, when the business has a number of hazardous elements, too much can go wrong. If your business is simply inherently dangerous, you will want to have umbrella insurance.
• Company Vehicles – If your business requires you to have car and drivers on the road, liability increases with every mile. Even with commercial auto insurance, you may not have enough coverage for the number of vehicles and drivers you have on the road.
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These are but a few of the reasons why many businesses will want to have umbrella insurance. Having additional and affordable protection simply makes sense for the longevity of your business. If you do not have umbrella insurance for your business and want to have additional insurance coverage, contact Signet Insurance Group today.
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