Umbrella insurance is sold by the million, so if you have at least $1 million in assets then it’s time to consider umbrella insurance coverage. Should a lawsuit attempt to claim business assets and personal assets in a case, your umbrella insurance will be there to cover you from the storm.
Typical insurance will cover anywhere from $250,000-$500,000 in settlements. However, reports show that liability lawsuits typically seek settlements well into millions of dollars. The gap can be a devastating difference for your business.
If you fail to prepare…
It’s important not to underestimate the situations where people may take advantage when insurance money is involved. If you are a business owner, these are a few scenarios where having umbrella insurance can save your business:
- Driving: roles that require a lot of time on the road may be at higher risk for potential lawsuits in an accident. Whether it’s pizza delivery or an outbound sales executive, umbrella insurance for your business should be considered to cover the difference beyond standard auto insurance.
- Animals: if you have a pet friendly office, know that certain breeds that can be considered more aggressive and may put you at risk for a lawsuit if there were ever a dog bite.
- Entertaining clients at home: if you have a pool, a deck that needs replaced, pets, or a gun in your home, entertaining clients as part of your business may expose you to liability in the event of an accident.