If you run a business, you know that you should have business insurance. One kind of insurance you may not have considered is the addition of umbrella insurance.
Business owners may believe that all their expenses would be covered in the event that they are held liable for injuries or problems at their place of business. However, this isn’t always possible due to limits on insurance and other factors. The good thing to know is that umbrella insurance can add an extra safety net, so you’re more likely to survive a lawsuit or insurance claim without extraneous expenses.
What does umbrella insurance cover?
Umbrella insurance is for more than personal injuries on your business propery, but it does provide additional coverage for damages as a result of injuries. For instance, the insurance company will cover harm due to falls or medical bills that result from a collision with a company vehicle.
Property damage liability is another benefit of umbrella insurance. It extends your coverage and helps you cover costs associated with damage to vehicles or property, even if the incident was accidental.
If you own a rental unit, umbrella insurance is there to protect you against tenants’ claims. For instance, if someone trips and falls on a walkway on the property, you could be held liable under some circumstances. Having umbrella insurance helps cover those unexpected liabilities.
Umbrella insurance also covers a few unique situations including:
- Mental anguish and shock
- Malicious prosecution
- False imprisonment or arrest
Umbrella policies come in different monetary amounts, so it’s a good idea to think carefully about how much additional coverage you’d like to have. For example, if you have $300,000 of coverage on your fleet vehicle, then you may wish to extend that coverage with an umbrella policy.
The policy, if it’s $500,000, for example, will cover any expenses beyond the original $300,000, up to $500,000 more. In total, that gives you $800,000 in protection between the two policies.
There are often requirements to meet before you can get an umbrella policy, so it’s a good idea to talk to your insurance agency and other possible agencies to get the best rates and an idea of how much coverage is enough for your situation. Your attorney can help you sign up for the correct policy or file a claim against an insurance agency if there is a problem at your business.