The Benefits of Umbrella Insurance for Small Business Owners

Written By Charlotte Insurance on April 27, 2023. It has 0 comments.

The Benefits of Umbrella Insurance for Small Business Owners

Running a business can be expensive. It’s even more so when you run into limitations with your standard business insurance. If something happens to your building or one of your vehicles that leaves it out of service and your regular business policies don’t provide enough coverage, you might be out of luck. That is, unless you have an umbrella insurance policy to fill in the gaps.

What is umbrella insurance? And how can you benefit from this additional policy? Here’s what you need to know to protect your small business.

What is Umbrella Insurance? Do You Really Need It?

As the name implies, umbrella insurance is designed to provide you with some extra protection, should your existing policies not have enough coverage. The name comes from the fact that the insurance covers your business, much like a standard umbrella keeps you shielded from the rain.

In general, umbrella insurance is an addition to a business insurance policy. If you don’t have enough liability insurance to take care of what needs to be done or if you’re facing something, like a lawsuit, your umbrella insurance policy may kick in and help prevent you from having pay a lot of money out of pocket.

Every business can benefit from an umbrella insurance policy. Although it is another expense, it’s one that can save you money in the long run. It’s better to add a small amount to your monthly expenses, especially if it’s insurance, then to have to pay a large amount out of pocket all at once if you don’t have the coverage that you need.

What Does Umbrella Insurance Cover?

The main benefit of umbrella insurance is the fact that it kicks in when needed and works in addition to your standard policy. Some of the many things that you can choose to include in your umbrella insurance are:

  • Pollution and Legal Liability – If your business runs afoul of environmental laws, your standard liability insurance won’t be able to help.
  • Employer’s Liability – You should have workers’ compensation insurance already, but this policy adds to it.
  • Business Liability – Umbrella insurance provides extra coverage where your standard business liability policy falls short.
  • Business Vehicle Insurance – Sometimes commercial auto insurance policies don’t provide all of the potential compensation that you’ll need in case of a serious accident.

These are just a few examples. There are plenty of other things that your umbrella insurance can cover.

How Do You Benefit from Umbrella Insurance?

It’s clear that having extra insurance coverage, just in case you need it, is the main benefit of purchasing an umbrella policy. You want to make sure to be prepared for any possible unforeseen scenario that comes your way.

Have Questions? Contact Charlotte Insurance

Wondering if your company needs an umbrella policy? Contact Charlotte Insurance. Our agents can explore and explain all available options with you and put together the coverage plan that your business needs.

Leave a Reply

Your email address will not be published. Required fields are marked *