Every business needs some type of general liability coverage. For an added layer of protection, you can purchase an umbrella policy that extends the limits of your coverage in case an accident or any such event occurs in which your company is proven to be liable. Having the added coverage of an umbrella policy ensures that your company will not be financially devastated if an accident happens.
What Is Umbrella Coverage?
Umbrella coverage is a special type of policy that extends the normal limits of your existing commercial policy. Many insurance policies have caps or limits on how much they will pay out if an accident occurs and a claim is filed. Umbrella coverage will provide additional funds that can be used to pay off medical bills or other expenses that have exceeded the commercial policy’s normal boundaries in terms of payouts. The additional funds offered by an umbrella policy will give you the peace of mind you need to run your business effectively.
Settlements and General Liability Coverage
If someone falls or has any other type of accident on your company’s property, you, as an owner, will generally be responsible for the person’s medical bills and any property that was damaged. If the victim can prove that your company knew the problem existed and it had not been repaired, they may be able to file a claim for damages over and above the actual cost of their medical care. Offering a settlement is one way that you can avoid going to court to determine exactly what your liability is. If the settlement is too high, it may need to be covered by an umbrella policy to ensure that your company has the means to pay for the damage.
Is Umbrella Insurance Only for Businesses?
Umbrella insurance isn’t only for businesses. This type of policy can help both individuals and businesses in protecting themselves from devastating financial losses. While commercial insurance is written to protect the business’s assets and investments, umbrella policies have the means to protect you from any financial loss caused by someone being injured on your property or while assisting you with the performance of your duties. Even on a personal level, having additional insurance is a great way to protect your assets and keep high payouts to a minimum. The right policy will protect you from financial loss and make sure you have the peace of mind you need.
Does My Business Have Enough Liability Coverage?
There is no state requirement stating that a business owner must carry a commercial insurance policy. In fact, umbrella policies have also been found that allow you to have the protection you need on a personal level. Understanding the needs of your business will determine how much umbrella coverage you may need to fully protect your personal assets, as well as those of your business. It’s important to sit down with your insurance agent to have your existing policies evaluated. This shows whether or not you have the coverage you need to protect your company.
It is the goal of every insurance agent to protect each client’s assets and liability. If you plan on insuring a commercial business, the first thing you should do is make sure that all your assets are secured. If you are looking for a commercial insurance policy, make sure to contact the experts at the Pittman Insurance Group, our agents will be happy to help.