As a business owner, you have to navigate significant challenges daily. New threats emerge every year that can potentially cause significant harm to your investment. While securing a strong business insurance policy is essential, there are still some areas where you may be left unprotected. You will be vulnerable if you don't have extra coverage. Consider the benefits of adding business umbrella insurance.
Business umbrella insurance provides increased protection if your business is involved in a significant liability dispute. Generally, your business liability insurance policy should protect you if an accidental injury or property damage occurs. However, in serious cases, your general liability insurance may not be enough to cover you if something goes wrong. Your business will be financially responsible for damages exceeding your liability limits. That's why umbrella insurance is an asset. Umbrella insurance steps in to cover the remaining balance once you've reached your liability coverage limit. A business umbrella policy is an important type of supplemental coverage. The policy helps prevent you from going out of business or possibly accumulating debt.
Also Read: HOW DOES AN UMBRELLA POLICY ADD AN EXTRA LAYER OF PROTECTION?
Business umbrella insurance is a basic form of coverage in many industries. You should contact your state's government to see if purchasing business umbrella insurance is mandatory. If you rent the property for your business, your landlord may mandate you purchase commercial umbrella insurance. The policy is also recommended if your business leaves you potentially exposed to multiple lawsuits. You can rely on this type of coverage to help protect your investment.
Commercial umbrella insurance generally fills in coverage gaps and provides extra liability coverage. There are potential exclusions in your business insurance policy. Commercial umbrella insurance covers you if an issue arises that is not included in your business insurance policy. Possible exclusions include professional liability disputes, slander, and libel. Umbrella insurance can fill in potential gaps.
It's recommended that you look over your business umbrella insurance policy carefully to see if there are potential exclusions. The policy is unlikely to cover you if you purposely damage someone's property or cause a bodily injury. You're also left unprotected if you are handling a personal liability claim.
It is worth noting that umbrella insurance may not be necessary for every business. Contact your insurance agent so that you can evaluate your options. Assess the type of industry your business is involved in, the size of your business, the amount of important equipment you have, and the amount of daily traffic your business receives.
Analysts point out that smaller businesses may rely on umbrella insurance to protect the future of their business if a serious liability dispute arises. If your risk level is relatively low, you'll probably only need a small amount of commercial umbrella insurance to protect your investment.
Business umbrella insurance protects your investment during an emergency. The staff here at Scavone Insurance Agency will sit down with you and help you evaluate your options. Contact us today!
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