Owning a business is a stressful endeavor. There is a lot that can go wrong at any time. If you own a business, you really do not need to stress anymore. We hate being the bearer of bad news, but there's one big thing you may have missed: a huge amount of companies are not covered by catastrophic losses or lawsuits that have the potential to close their doors for good.
In fact, you simply cannot adequately protect your business without commercial umbrella coverage. Umbrella insurance is not nice to have: it is crucial that every company has it in place, whether you are a start-up company or a company that has been active for decades.
What is umbrella insurance?
Umbrella insurance is a type of liability insurance in addition to specified other insurances and can also potentially act as primary insurance for losses that other insurances do not cover. In other words, umbrella insurance exceeds both the scope of coverage and the amount of coverage offered by other insurances.
A simple explanation of how umbrella insurance works
Umbrella insurance will extend primary liability insurance such as commercial car insurance and general liability insurance, giving you greater protection for your start-up company
Without commercial umbrella insurance all claims for your exceeding limits Insurance must be paid out of your own pocket. This can be a huge financial burden for your business, especially if you are just starting out.
What is covered by umbrella insurance?
Commercial umbrella insurance covers damages such as:
- Property damage to someone else's belongings caused by your business.
- Body injury to an employee or a customer / client.
Why You Need Umbrella Insurance
Here are just a few of the many reasons why your startup may need umbrella insurance:
- Without umbrella insurance, you run the risk of going bankrupt. This is especially true for companies in industries that are prone to litigation where a large jury prize can put you out of business when it exceeds the limits of your policy.
- If an accident occurs, customers want to know that you will be able to cover it.
- You manufacture hazardous materials and there is a high risk of occupational injuries, which makes your company dangerous in itself.
- Your employees drive company vehicles, or their personal vehicles, to do their work.
Commercial umbrella insurance offers companies additional protection against catastrophic events that exceed your insurance limits. This can include car insurance accidents for employees or lawsuits that reach millions.
How much will umbrella insurance cost?
Since umbrella insurance is intended to supplement your other insurances, it is generally comparably affordable.
Responsibility is simply a factor in doing business. And all companies that plan to remain solvent and competitive should have an umbrella policy for proactive peace of mind.
Rest assured, Paradiso insurance has you covered
If you are starting a business, make sure you have the right insurances to cover you in case the worst should happen. Commercial umbrella insurance is an absolutely important part of protecting your business.
To learn more about umbrella insurance for your business, read about the commercial umbrella coverage offered by Paradiso Insurance.
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