MONDAY, FEBRUARY 20, 2023
In 2005, the Small Business Association reported that small businesses involved in lawsuits paid between $3,000 to $150,000 in legal fees. That was 12 years ago.
Today, the cost of battling a case in court could cost you millions in legal fees, even if you win the case. The SBA also reported that businesses often need to reduce expenses following litigation. However, doing so affects business revenues. The best approach businesses owners can take is to protect their companies with umbrella business insurance.
What Is Umbrella Business Insurance?
Umbrella business insurance is extra liability insurance. Your general liability insurance policy usually has coverage caps. Those caps help prevent your business from exceeding the limits of the policy. But, there's always a chance damages could exceed the limits of the policy.
When you have umbrella insurance, it’s activated once you exceed the general policy limits. Umbrella coverage is a valuable added level of coverage. 
What Does an Umbrella Insurance Policy Cover?
Your umbrella insurance policy covers general liabilities. For instance, if someone gets hurt at your business, your policy may cover your settlement costs and their medical bills.
Umbrella insurance policies may also cover your attorney’s fees. With the cost of legal counsel increasing, you don’t have to sacrifice quality for costs.
Additionally, an umbrella insurance policy may add extra coverage to other policies. For example, it may help protect your commercial auto insurance policy. It may also help you when you don’t have primary insurance for a particular type of loss.
How to Determine How Much Coverage You Need
When it comes to purchasing any insurance product, you must know what amount of coverage is right for you.
If you don’t purchase enough insurance, then you may impose a financial hardship on your business. If you purchase too much, then you could be wasting money your business needs. Keep the following in mind when determining how much you need in umbrella insurance:
-
You need enough coverage to cover your business assets.
-
Only purchasing enough insurance to cover the gap between your business asset value and your general liability policy may not be enough. This is particularly true if you are in a high-risk industry.
To ensure you have enough coverage, talk to your insurance agent about your options. Ask them about the standard amount of coverage for businesses within your industry. Knowing standard coverage rates gives you a better idea about how much coverage you need.
Umbrella business insurance is an extra safety net for your business. It protects you when you need additional liability coverage.
JS Edwards & Sherlock is here to assist you with your business insurance needs. Start a free online quote today to get a fast estimate. Give us a call at 409-832-7736 for more information.
No Comments
Post a Comment |
|
Required
|
|
Required (Not Displayed)
|
|
Required
|
All comments are moderated and stripped of HTML.
|
|
|
|
|
|
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only.
It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional
in your state. By using this blog site you understand that there is no broker client relationship between
you and the blog and website publisher.
|