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What is umbrella coverage? Doesn't my business have enough liability coverage already?

What is umbrella coverage? Doesn't my business have enough liability coverage already?

Umbrella insurance is an apt name for this coverage that extends over and beyond other underlying policies to protect your business or home. You may believe that you have the coverage that you need, but umbrella insurance could be the difference between life and death for your business or family savings. As a result of rising costs in the marketplace, an automobile accident can bankrupt an individual or a small business instantly.

“Three seconds can wipe out 30 years of hard work,” said Shaun Webb of Pepper, Johnstone & Company. ”An umbrella policy can protect individuals and businesses in the case of catastrophic loss.”

Pepper, Johnstone & Company can help individuals and business owners craft the perfect insurance plan for their unique needs. Insurance can be complex and the best plan may be a combination of liability coverage combined with an umbrella policy and/or excess liability insurance, which is like an umbrella policy but can be much more specific.

“Umbrella insurance can protect you from rising costs...Settlements reflect the landscape around us and the marketplace,” Shaun said. “You have to think about how much you have to lose. Also, business owners should think about what other people in the industry are doing. What is the market bearing? How much do I have to lose? How much can I afford to pay?”

Some business owners think that commercial liability coverage is all that they need, but purchasing an umbrella policy can cover expenses that may exceed what liability coverage provides, preventing you from having to pay out of pocket expenses.

Umbrella coverage can be complex, but Pepper, Johnstone & Company can help find specific coverage for a business or individual that meets their specific needs. They can advise the client based on what risks they are willing to bare themselves and craft a policy that meets the client’s needs.

You may think the severity of these types of losses are unlikely and aren’t worth the price of additional coverage, but one lawsuit could prove you wrong at the expense of your business. Suppose your business suffers a lawsuit as a result of an accident and you have a policy that covers it, but you are left with a remaining portion of $500,000 that you would be responsible to pay. This is where umbrella coverage comes in handy and can save you thousands, even millions of dollars.

Umbrella coverage can help protect you from rising medical costs if someone is hurt at your place of business or if there’s an accident in a company car. These unexpected and often unlikely accidents can result in costs that exceed what your coverage provides. But, umbrella insurance which is bought in million dollar increments can provide an amount from $1 million up to $10 million or more to protect your business.

It’s worth it to have the coverage in place to protect you no matter what life throws your way. Think about the time, energy and money that you’ve invested in your business wiped out in a few seconds. Commercial umbrella insurance enhances the liability coverage you have and expands it to meet the demands of unpredictable jury awards. With rising medical costs and more litigation, an individual is apt to incur up to seven figures. An umbrella policy can provide broader coverage than the underlying coverage.

Your umbrella policy can help you out with situations that include car accidents, Workers Compensation cases, injuries in your place of business and lawsuits over third-party property damage.

“You have to assess what you can afford, but in making that assessment, think about what you have to lose,” said Shaun.

Small business owners and individuals in particular should take extra measures to insure their future. Pepper, Johnstone & Company can help you navigate that process.

Pepper, Johnstone & Company protects your family with a choice of multiple insurance carriers to choose from, for home, auto, and business. We've helped countless people save money on their insurance while making sure they're properly covered. Visit us today at our website, or give us a call at 256-232-7818 to get us working on a quote for you today. You can also request an online quote here.