Why Umbrella Insurance Is Essential For Businesses

Some business owners think that umbrella insurance is meant only for large businesses and that it’s an expensive coverage and unnecessary unless you have over a thousand employees.
However, the truth is that umbrella coverage is what all businesses need for protection against losses that exceed the standard policy’s limits.

Remember, you may not have a multi-million dollar company but you can still be sued for more than what you have. Lawsuits can happen in a blink of an eye and your business can be compromised.

Why You Need Umbrella Insurance

All types of businesses entail risks and liabilities. These liabilities involve injuries and accidents because of the work being performed or the products that you manufacture. For example, businesses need vehicles for general purposes and these vehicles are prone to being involved in road accidents. You may find yourself in a situation where you are being sued for property damage or injury and it can easily exceed your standard policy’s limit.

Having an umbrella policy means that you don’t need to worry about exceeding the limits of your primary policy. It acts as a secondary layer that gives you peace of mind for the safety of your business. Furthermore, the benefits of an umbrella policy do not stop there as all umbrella policies are not the same. You can schedule a talk with your agent to ask them about the types of policies that they provide.

What You Need to Look For

There are many types of umbrella insurance and you need to talk to an experienced agent to know if they offer the types of coverage that you need. Here are some ideas to start you off.

No to Self-Insured Retention – This is similar to having a deductible and insurance companies might need you to pay part of your first liability. This amount can range from $5,000 to $20,000 depending on the umbrella insurance coverage. The first thing that you need to do is ask your agent for specifics and if they allow it, ask them to remove this kind of requirement on your policy.

Unlimited Protection – There are umbrella policies that can give you unlimited protection or defense payments when you exceed the limits of your primary policy.

Coverage for Everything Else Not Covered on Standard Policy – Make sure that you get your umbrella coverage to cover everything else that your standard policy does not offer. Remember that this is your primary reason for getting an umbrella coverage in the first place.

Umbrella coverage provides more than protection for your business. Having more insurance also means that you can give your company an edge over others because you have someone that backs you up financially. This is why looking for an insurer that can provide you with your needs is essential.

At Wellcovered Insurance, our mission is to ensure that we protect our clients and offer them policies that they can afford. Learn more about our products and services by calling our agency at (386) 218-4951. You can also request for a free quote by CLICKING HERE.