Umbrella insurance provides extra protection a business needs when unexpected events occur and go beyond their primary insurance limits. From multimillion-dollar lawsuits to employee auto accidents, umbrella coverage is a comprehensive added layer of protection to help companies from being hit too hard with expensive liability claims.
Practically any business can benefit from holding the excess liability coverage that an umbrella policy provides. Accidents can happen at any moment, and there’s always a chance of encountering a lawsuit that exceeds policy limits for your existing coverage.
But how do you know if this kind of Orlando Property & Casualty Insurance is right for your business? Let’s break it down a little more, including how it can benefit your small business.
What is Umbrella Insurance?
Generally written over primary liability policies, including general liability, workers’ compensation, and employers’ liability, umbrella insurance covers legal costs, medical expenses, and damages that go beyond the limits of the underlying policies already in place.
Suppose a customer sues your business, and you take on legal costs in the millions, and your general liability policy’s limits are maxed out. In that case, an umbrella policy picks up the remaining difference. Commercial umbrella insurance also helps if you have multiple claims and your policy’s limits are depleted.
Additionally, umbrella insurance policies may broaden coverage that’s not part of the primary liability policy.
Does Your Business Need Commercial Umbrella Insurance?
A business’s industry type and its level of exposure to the public are the two main issues to consider when buying insurance. The higher the risk of third-party liability claims, the higher the necessity of umbrella insurance.
Any business potentially at risk of going past the limits of their existing policies should think about buying commercial umbrella insurance. Companies with commercial property that works with the public should consider purchasing insurance since they are working directly with people who expose them to possible risks, such as physical injury, libel, or misrepresentation of services and products.
When unexpected accidents occur—and they will—it’s essential to have as much protection as possible. Not having umbrella insurance puts businesses in a higher risk category if something goes wrong, like having to pay for someone else’s medical expenses if they suffer an injury on your property or because of your business.
Most growing businesses might not have the funds to recoup from a devastating lawsuit, so it’s important to consider investing in umbrella insurance. In the end, it’s all about being ready for the unexpected and having a dependable plan in the form of umbrella coverage backing you up.
About The Hilb Group
Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Founded in 2009, the Hilb Group has been helping clients to make sense of their options and make the smartest choices for their circumstances. Whether you need Warehouse Insurance or any other type of business or personal coverage, we encourage you to contact our friendly, experienced, and capable team today. Call us at (800) 776-3078 for a consultation.