Business Umbrella Insurance
Every business out there needs some sort of insurance coverage. Insurance is purchased by a business on a speculative basis, to cover unforeseen costs that would be catastrophic if the business had to pay for them at the time of an incident. In simplest terms, insurance covers what you wish does not happen, in the unlikely event that it does. Most businesses opt to purchase umbrella business insurance policies. If your business is a growing business, or you are looking to expand, an umbrella policy may be a wise purchase toward your future. Once the domain of large commercial businesses, an umbrella policy is now available for any size and type of business.
Most businesses today have some sort of liability insurance. Umbrella business insurance policies protect businesses from costs that exceed their regular insurance limits. Some such incidents include workplace violence, workman’s compensation and trademark lawsuits. For example, if your general liability policy covers up to $300,000 in damage and an incident occurs that is $700,000 in damages, an umbrella business insurance policy will cover the additional $400,000. The business umbrella insurance only “kicks in” once your regular policy is exhausted, in this example, once the $300,000 liability insurance policy is exceeded, the umbrella insurance begins to kick-in.
You may be concerned that covering your business with a business umbrella insurance policy will be expensive. Depending on the type of business you have, it could be, but more than oftentimes, it isn’t. The costs of coverage are determined by how much coverage you are purchasing, how much the principal’s personal liability might be (for example, were you ever convicted of a criminal offense) and the rates given by the company providing the coverage. Like anything else you may purchase, it’s wise to shop around and compare what other companies have to offer before you settle on one coverage portfolio. In order to get the best possible rate above what you will find comparison shopping, it’s a good idea to purchase your umbrella business insurance policy from the same agent or group that covers you for liability. Umbrella business insurance policies are universally considered a smart business decision and a good value because significant amounts of coverage can be purchased for relatively low premiums. One popular estimate is that a business can expect to pay five to eight percent of the liability coverage cost for an umbrella business insurance policy. In order to obtain coverage, a business will need to furnish their insurer with the particulars of their business, such as the nature of the business, the types of businesses you do business with and a basic accounting of the assets and liabilities. As with personal insurance, businesses deemed to be of higher risk are charged higher premiums than those that are not. Some businesses, such as the pharmaceutical industry, are more expensive to insure than a local Mom and Pop business. While no policy can cover every possible occurrence that can happen to a business, an umbrella policy will cover most of them. In a world of few guarantees, an umbrella business insurance policy is about the closest thing that exists to one.