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How to Know When Your Business Needs Umbrella Insurance

How to Know When Your Business Needs Umbrella InsuranceUmbrella insurance is a broad coverage used to protect your business from liabilities that threaten its financial stability. This insurance extends over other policies to provide additional coverage when certain underlying policies have reached their limits. It also can kick in to fill in gaps that other policies don’t cover. The layers of protection makes it especially important for business owners; allowing access to higher limits of protection from risks, at an affordable rate.

The Ins and Outs

Umbrella insurance protects your assets if you are sued for an accident or something else catastrophic happens, by covering expenses over the limits of coverage. Keep in mind that umbrella insurance should not take the place of your business insurance; instead it should be considered supplemental insurance that you add to it.

Judgments can be a lot bigger for businesses than they would be for individuals. One small accident on your business property can take down your business permanently. As your business grows, you may want to increase your coverage. It is important to carefully examine your insurance coverage as you become more successful to make sure you have adequate coverage.

If your business has growing assets that you do not want to put at jeopardy, then it is very important that you obtain umbrella insurance so all your bases are covered and you can have peace of mind knowing you are fully protected.

Increased Financial Protection

Even if your business is already covered with general liability insurance,  businesses commonly come across legal judgments, settlements, or an expensive repair that exceeds your coverage limit under that policy. Umbrella insurance becomes increasingly important as you build wealth and assets, when you begin to build wealth or open your own business.

What makes an umbrella policy particularly beneficial to business owners is its simplicity. For one single premium, you’re expanding your coverage limits over a broad risk territory. It stretches over many business activities, protecting your business and employees.

Your Game Plan

Evaluate the risks your business faces on a regular basis, how much contact there is with the public (customers, suppliers, partners, etc.) and the potential for lawsuits. If your business offers services, keep in mind that umbrella insurance will not apply in situations where malpractice would be called for.

An insurance agent can help you determine which limit option of umbrella insurance is appropriate for the size and type of your business. If you decide to take out an umbrella policy, make sure that it covers the same time periods as your primary policies.

About A.J. Benet Inc. Insurance Agency

At AJ Benet Inc. Insurance Agency, we make sure that your New York Business Insurance policy includes more than the simple general liability and product liability. Our policies extend in cases where you underlying limits are exhausted. Our team of experts are willing to go the extra mile and not only protect your business but understand it. For more information, call us today at (914) 381-2040.

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