Umbrella Insurance Policies
While a business owner’s policy will cover some of the most basic and commonplace accidents that tend to take place over the years, these policies are not always enough. In some situations, owners will find themselves struggling with liability issues that are either not covered with their base policy or exceed their current coverage. When this takes place, one of the best options for a more robust coverage is an umbrella insurance policy.
It is important for every business owner to take a closer look at their own industry, the amount of coverage they currently have, and what possible risks could begin to pop up in the future. Basic coverage for a business is going to immediately assist the company in the event of any number of liability issues ranging from the injury of a client while on company property to theft of company assets. While these types of policies are essential, it will not always cover some of the real world costs that can quickly move past basic coverage.
An umbrella policy comes with three primary advantages for those that would like to further protect themselves financially. First, in the event of a lawsuit the damages or settlement often move past traditional liability coverage which would mean the company has to pay out of pocket. Additional umbrella coverage will help to assuage or remove these costs, often paying out $1 million or more. It will also provide financial assistance for legal defense, generally up to around $100,000.
Finally, umbrella coverage will often help to fill in the gaps of one’s coverage for both their business or as a personal policy. As a company, this may include more irregular situations such as a false arrest, libel, slander, or even damage to rental equipment. For a single individual or a family, an umbrella policy will typically be bought in conjunction with an auto policy or along with homeowner’s insurance for recreational vehicles, more expensive personal assets within a home, damage caused by one’s children, injuries caused by pets, or any other number of scenarios in which the base policy will not cover damages.
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