As a business owner, there are two kinds of umbrellas that you may want to carry into the spring season: an umbrella to shield you from April showers, and an umbrella policy to protect you from liability lawsuits. The warmer weather may bring an increase in customer traffic, and potentially more risks. And while you may believe you’re covered under your pre-existing business owner’s policy, here are a few reasons why your company needs the additional coverage provided by an umbrella policy.
Liability Knows No Limits
Maybe you own a small business and can’t imagine a regular customer taking legal action against you. Or maybe you think that the day-to-day operations of your business have little impact on your customers that a legal situation isn’t possible.
Even so, businesses are the prime targets for liability lawsuits. And, sadly, legal and settlement fees could prove financially devastating if your company does not have "excess liability coverage," or what we commonly refer to as an umbrella policy.
You Have More at Risk than You Think
Don’t be fooled into thinking that if you’re a smaller business you have less to lose than the
bigger companies. Even if your business was closed and your bank account was emptied, there’s still a chance your personal assets may be at risk. An umbrella policy protects you, your business, and your future from financial devastation.
It Covers When Your Other Policy Won’t
Odds are, you already have business and/or professional liability insurance provided through your business owner’s policy. However, when the limits of that liability coverage are exceeded, as they often are in legal cases, umbrella policies pick-up where your other policy left off. An umbrella policy serves as extra protection to ensure that you have minimal out-of-pocket expenses in the event of a financial catastrophe.
With the changing of the seasons, take the time to make sure you’re protected against liability risks. Call your independent agent today and ask about adding an umbrella policy to your current insurance coverages. You never know if accidents will happen, but you can certainly live assured that Preferred Mutual will be there when they do.