How much insurance protection does your business have? It more than likely has a standard BOP, or Business Owner’s Policy, which contains policies like commercial property insurance and liability. You probably have specialty insurance policies as well, like commercial auto, workers’ compensation, manufacturing or product liability insurance and more, based on what type of company you run.
With that said, there are some insurance policies that tend to get overlooked and forgotten, like umbrella insurance. Why do you need an umbrella policy for your business? Let’s find out.
Do You Want to Pay Out of Pocket for Shortages?
Everyone knows that insurance policies have coverage limits. No matter how much you wish they didn’t, your insurer needs to adhere to those monetary amounts, even if the damage to your company is much higher. This is one of the main reasons why umbrella insurance coverage was created: to fill in those gaps when necessary. With one, your business will more than likely not have to pay for any shortfalls in your original insurance plans. That leaves your board of directors with one less thing to worry about.
Do You Know What Umbrella Insurance Covers?
One of the best things about umbrella insurance, on top of the monetary gaps that it can fill, is the multitude of situations that it covers. Here are a few examples:
Property Damage – If one of your employees accidentally damages a building that isn’t on your property, and they do it while they’re on the clock, your business could be found liable for the damages.
Traffic Collisions – Sometimes people driving company cars can cause accidents. If they do, your company could be the ones responsible for damage to the other vehicle and any medical bills for the other driver.
Medical Bills and Lost Wages – If a salesperson from a different company gets hurt on your company’s property, you could be found liable and have to pay for their medical bills and lost wages.
Workers’ Compensation – Although your workers’ compensation insurance helps, there are situations where it doesn’t provide enough monetary coverage. Your umbrella insurance can take over when those policies run short.
Advertising Issues – There are several ways in which problems with your advertising can end up in a courtroom. First, your business places false advertising, making promises that you can’t deliver. Depending on your products, this could lead to a class action lawsuit. Second, your advertising may include digs at rival companies, causing them to sue your business for slander. You could have to pay a hefty sum of money in fines.
Legal Costs – All of these situations can end up in the courtroom, where your business will incur legal fees and possibly pay settlement costs. Thankfully, your umbrella insurance can help pay those costs.
Have Questions? Contact Charlotte Insurance
Want to learn more about umbrella insurance for businesses of all kinds? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan your business needs.