Commercial umbrella insurance provides an extra layer of protection to your business. If you are involved in a serious liability dispute, commercial umbrella insurance can prevent your business from losing its assets. Here is an in-depth look at why commercial insurance coverage is so important.
● Explaining Commercial & Business Umbrella Insurance
Traditional insurance policies go into effect once you file a claim with your insurance company. Commercial umbrella insurance coverage acts the same way. However, it’s important to remember that umbrella insurance is supplemental coverage. You cannot use the policy to protect yourself until you have reached the limit on your traditional liability coverage. Initially, figuring out when you will be able to use commercial insurance coverage can be frustrating.
There are several common scenarios when commercial umbrella insurance is an asset. Imagine if a patron is visiting your business and they accidentally slip and fall. As a result of the fall, they have broken bones or other severe injuries. You will be responsible for covering their medical care, which can get expensive quickly. Your general liability coverage will cover the injured party’s treatment until you have reached your liability limit. Unless you add umbrella insurance, you will be responsible for covering any costs beyond your coverage limits out of your own pocket. You can potentially lose thousands of dollars, as well as your personal assets.
You can also add umbrella insurance to your commercial auto insurance. If you are using your vehicle to perform business-related endeavors, commercial umbrella insurance can prevent you from potentially losing your business.
There are other issues where you may have to rely on umbrella insurance. If a member of the company’s Board of Directors sues you for negligence or wrongful termination, you could find yourself in an expensive legal dispute. Likewise, if one of your employees alleges wrongful termination or harassment, you could potentially be sued for millions of dollars’ worth of damages. Commercial umbrella insurance can help you protect your business.
Another place where umbrella insurance can help to protect your business is by supplementing workers’ compensation insurance. Workers’ compensation protects your business if one of your employees gets seriously injured in the workplace. Depending on the severity of the injury, your business may be liable for millions of dollars. If you have commercial umbrella insurance, that can prevent your business from potentially losing substantial assets in a lawsuit over a severe injury in the workplace.
● Multiple Industries
If you are working in the consulting industry, you must be careful regarding the advice that you give out. If you make a mistake and give someone advice that turns out to be detrimental, they can sue you for negligence or slander. Depending on how harmful the allegations are, you may need commercial umbrella insurance to help you through the process.
If you are working in the restaurant industry, you could be at risk due to the actions of your patron. If you serve alcoholic beverages at your restaurant and one of your patrons drinks too much and damages someone else’s property, you may be held responsible. Once again, having the added coverage of an umbrella insurance policy can help offer a safety net for these high-cost situations.
● Commercial Insurance Cost
Umbrella insurance normally costs around $50 per month. Before you decide which policy to choose, think about the size of your business and the number of risks involved with operating your business. This should help you as you research different quotes and coverage.
Commercial umbrella insurance can help you protect the future of your business. Your personal assets are also protected in the event of a legal dispute. Do you have additional questions about business insurance? Contact the experts at First Insurance Solutions today. We are eager to help you with all your coverage needs.