Investing in the right insurance plan is critical to protect your business’ financial assets in case of certain unforeseeable circumstances. However, all business insurance coverage options have a specific limit up to which they can recompense your losses. In order to ensure that you are adequately protected against the potential perils that your business may face, you must get a commercial umbrella coverage.
What exactly is commercial umbrella insurance?
Commercial umbrella coverage provides businesses with an additional layer of protection for liabilities that exceed their normal business insurance limits. It can also extend the coverage to certain circumstances that are not included in other types of insurance policies. In most cases, these policies are quite affordable and offer a high amount of protection to your business. The following factors make umbrella insurance an even more critical investment:
- Your liability coverage may not cover the costs of legal defense
- You have considerable financial assets to protect
- You are in a business that is prone to litigation by customers
The nature of products or services you offer increase the chances of legal claims
Given below are benefits of investing in a commercial umbrella insurance:
Increased protection from unexpected risks
Though you have a business liability insurance, there may be a lawsuit or legal judgment requiring to pay a higher amount to the other party. For instance, an employee or client may file a lawsuit holding you responsible for injuries suffered in an accident on your office premises. The legal judgment may require you to pay for his treatment costs, lost wages and other losses, which may sum up to an amount more than your liability coverage. In this case, umbrella insurance will cover up the additional costs, saving you from paying the claims out of your pocket.
Expand coverage limits
Umbrella insurance allows you to significantly expand your existing coverage limits by paying a slightly higher premium. Therefore, you can protect your businesses against a broad range of perils, while simultaneously creating a safe environment for your employees.
Coverage For Additional Liabilities
A commercial umbrella coverage also safeguards your business from incidences that are not otherwise covered under your insurance policy. These may include claims due to a misleading advertizing campaign or a commercial vehicle not specified in the business insurance plan.
Smith-Reagan Insurance Agency offers various commercial umbrella and business insurance plans in McAllen, TX. For details about the coverage options, you can call at (956) 399 – 1353.