Posted on: August 29, 2016 by titan-goodrich
Even though you have all of the typical insurance coverages recommended for small business owners, you may not be as protected as you could be. If you don’t have a Virginia Small Business Umbrella Insurance Policy, you are at risk of exposures that may not be covered by your commercial insurance policy. If you assume that small businesses don’t need the extra protection provided by an umbrella policy, think again. There are several business benefits to having an umbrella policy, regardless of the size of your business.
What is an Umbrella Policy?
An umbrella policy, also often called an excess liability policy, protects you above and beyond what your other commercial liability policies (commercial auto, general liability, employer liability, product liability, etc.) cover. Simply put, when your other policies have been maxed out due to an unusually expensive claim, an umbrella policy goes into effect and takes care of the overage. Think of it as an extra layer of protection for the most serious and potentially devastating liability claims your business could possibly face. You may never need to draw on your umbrella policy. You may never need to draw on any of your insurance policies. However, if a time comes that you do, you’ll be glad you had the foresight to add this extra protection. According to a Thomson Reuters study, in 2013 the average product liability award was nearly $6.4 million. Could your business absorb that expense?
Why Open An Umbrella?
Insurance exists because one can never predict the future. You can never predict whether your delivery van will plow into a crowd and cause devastating injuries to pedestrians. You can never predict that a product you sell is defective and will injure hundreds of people. Disasters happen, and that’s precisely why it’s smart to open an umbrella policy. Without one, you’re taking a gamble that nothing major will befall your business. Considering the fact that umbrella insurance is very affordable. You can buy it in million-dollar increments, so you can choose how much extra coverage you’d like.
If you want to be certain that you are adequately protected from the many risks your business faces on a daily basis, an umbrella insurance policy is right for you. Contact us at Goodrich & Watson today to learn more about the benefits of this coverage.