Protecting your business from catastrophic losses – Commercial Umbrella Insurance
Like a personal umbrella, a business umbrella policy will cover a catastrophic loss and can save a business from huge financial distress. Often, it can be the difference of staying in business or going out of business.
As with many insurance plans, your general liability policy will outline the maximum amount the insurance company will pay against a liability claim. So, if your small business gets sued for $250,000 for medical costs associated with an injury caused by a worksite hazard, plus an additional $100,000 in legal fees, but your coverage maxes out at $300,000, then you are responsible for paying the difference of $50,000.*
If you are on the higher end of the risk scale and already have general liability insurance, you can also opt for excess insurance or umbrella insurance that increases your coverage limits. This will cover you in situations in which you’re worried that your existing coverage won’t cover all your costs should someone file and win a claim against you.*
Be sure to do your industry research before you invest in any policy. Sometimes a client contract will require that your business has the appropriate coverage or umbrella insurance to perform work on their behalf. Likewise, some construction contractors may add you to their general liability policy as an additional name to be insured for the duration of the project.*
It is important to discuss with a Wenner-Davis & Associates Insurance agent what the best coverage is for you on a commercial umbrella policy. Ask a Cross Insurance agent about Excess Liability Coverage today.
*Information provided by www.sba.gov