One of the unexpected yet common perils many small businesses face is the threat of a lawsuit. Whether it's from a customer, vendor, or former employee, the impact can be financially devastating. As an added layer of protection to existing business insurance policies, umbrella insurance offers even more assurance against legal settlements.
Using Umbrella Insurance To Cover Lawsuits
What Is Umbrella Insurance?
The policy is typically an extension of a company's existing liability coverage. Most of these customized business insurance plans have coverage amounts of more than one million dollars. The way umbrella insurance works is if a small business is sued for an amount over the maximum threshold in a firm's current liability policy, the settlement will come from the existing plan. The remaining amount is picked up through umbrella insurance.
Why Is Coverage Important?
Lawsuit settlements can be substantially high. Umbrella insurance is especially important to have in case payouts go above and beyond what is offered through standard business liability plans. The policy has additional benefits as well. There may also be claims not covered by current coverage such as outcomes from online breaches or libelous or slanderous statements. Depending on the plan, existing liability policyholders can even extend coverage on other business insurance coverage already in place.
What About Cost?
In some cases, umbrella insurance can be less expensive than adding more coverage features on an existing business insurance policy. A professional agent will provide a comparison between the two plans to show which ones are financially feasible.
Small business owners invest significant amounts of money, time, and resources into launching and growing their operations. Having adequate coverage, such as umbrella insurance, provides financial protection against lawsuits and other claims. Let the experienced team of agents at Craig-Massee Insurance Agency in Milledgeville, GA, help you secure a customized and affordable policy designed for your company's unique needs. Call (478) 452-3539 for insurance quotes. Visit their website for information on the agency's suite of commercial services.