Business Insurance: Why You Need An Umbrella Policy
As a business owner, you already know the importance of quality business insurance. However, many business owners have yet to be “sold” on the importance of an umbrella policy.
What is an umbrella policy? In a nutshell, it picks up where your standard business insurance leaves off. For example, if you are successfully sued for $1.2 million and your business insurance only covers the first $1 million (a likely case), then the umbrella policy would cover the additional $200,000.
It’s also important to note that an umbrella policy will not just pick up where your general liability insurance ends, but it will also pick up where your other insurance options end. For example, your commercial auto insurance policy might only cover your business up to a maximum of $1 million as well. If your business is successfully sued following a commercial vehicle accident, the umbrella policy will extend that coverage as well.
Why is umbrella insurance so important? Because you live in a litigious age. People are willing to sue over just about anything. Further, when they do sue, their attorneys typically attempt to reach a maximum settlement that can easily bankrupt a small-to-medium sized business.
It’s quite likely that your existing commercial insurance simply doesn’t cover the extent to which people are willing to sue you. If the unexpected occurs, and your business is found liable for more than $1 million in damages, then your life’s dream could be ruined with just one ruling.
Unless you have an umbrella policy.
Evaluate the cost of purchasing an umbrella policy versus the potential cost of an excessive judgment against your business in the event that you lose a lawsuit. You’ll find that an umbrella policy is well worth the investment.
If you’d like to learn more about an umbrella policy for your business, feel free to contact us. We’d love to give you more information.
Robert Macoviak is the President of Oyer, Macoviak and Associates. Oyer, Macoviak and Associates is the oldest independent insurance agency in Boynton Beach and has been in business since 1953. Oyer, Macoviak and Associates are vested members of the community who are committed to doing business face-to-face and being your insurance advocate in times of need.