Umbrella Liability Insurance
Sometimes also referred to as Excess Liability Insurance, an Umbrella Liability policy is specifically designed to supplement existing liability insurance policies carried by your business. After all, it’s a known fact that small businesses and startups face greater risks than other types of business and an umbrella liability insurance policy helps to mitigate financial risks by providing additional liability coverage when you need it the most.
In most cases, an Umbrella Liability policy goes into effect when a claim exceeds the coverage provided by an underlying policy such as a general liability, business vehicle, or business owner’s insurance policy. Umbrella policies can also protect your business when the coverage limits of other types of business insurance are surpassed.
Here’s an example of how umbrella coverage works: Imagine that your business is suddenly faced with a $1.5 million legal settlement as a result of a claim. Now assume that your general business liability policy only covers your business for settlements up to $1 million. Normally, this would mean that your business would be responsible for paying an additional $500,000 to the claimant out of pocket. An Umbrella Liability policy protects your business by covering that additional $500,000 so your business doesn’t have to.
The good news is that umbrella liability insurance for small businesses tends to be relatively inexpensive compared to other forms of insurance but the peace of mind gained by having one of these policies in place is priceless if a claim is made against your business that exceeds the limits of your existing small business insurance products.
Peter Green Insurance is a licensed and experienced insurance agency that understands the many challenges faced by today’s small business. For this reason, we offer a variety of insurance products to keep your business and your assets safe in the event of a claim against the business. If you would like to learn more about how an umbrella liability policy can protect your business from unexpected expenses or if you have questions about other insurance products specifically designed for small businesses, please give Peter a call today at (888) 725-7776 or Contact Us for a free quote.