An umbrella policy is a safety net, providing crucial liability coverage beyond your primary insurance. It safeguards your assets from costly lawsuits and damages that exceed the limit of your standard primary insurance.
Every business – regardless of size or industry – should consider an umbrella insurance policy.
Major lawsuits or liability claims can have devastating financial implications if a business is not properly insured, and an umbrella policy can ensure that a high-cost lawsuit doesn’t lead to bankruptcy or forced liquidation.
For example, a customer may walk into a restaurant and experience a fall, resulting in severe injuries. The injured customer sues the establishment for medical bills, lost wages, and pain and suffering, amounting to $1.5 million. The restaurant’s general liability policy has a $1 million coverage limit.
With an umbrella policy, the store owner can rest easy knowing the additional coverage will handle the remaining $500,000, preventing the business from having to pay out of pocket and risking bankruptcy.
Additional instances where a business’s umbrella policy can potentially cover include:
- Legal Fees: Defense costs associated with lawsuits, including attorney fees.
- Medical Expenses: Claims exceeding your primary policy limits.
- Product Liability: Claims related to defective products or services.
- Professional Liability: Claims arising from errors or omissions in professional services.
Umbrella insurance policies also tend to be an affordable add-on that provides a tremendous amount of coverage.
Factors like your business type, industry risk, and your desired coverage limit influence the cost of an umbrella policy.
GTM Insurance Agency can help give you peace of mind by ensuring you have the correct coverage in place, contact us today for a free quote today.
