Umbrella insurance is a broad type of coverage used to protect liabilities that threaten financial stability. This insurance extends over other policies to provide additional coverage when certain kinds of underlying policies have reached their limits. It allows for a fuller rage of protection for many circumstances.
These are the types of damage covered by an umbrella policy:
- Bodily Injury
- Property Damage
- Other Kinds of Legal Damages
- Legal Fees
An umbrella insurance policy may also fulfill gaps that other policies don’t cover, acting as an added layer of protection, which is especially important when you begin to build significant assets. Let’s take a further look at what umbrella insurance offers.
Increased Financial Protection
Umbrella insurance is especially important for those with high liability risks, such as business owners. Even if a business is already covered with a standard business insurance package, you could face a legal judgment or an expensive repair that exceeds your coverage limit under a general policy. Umbrella Insurance covers what general liability insurance doesn’t; saving you from having to pay those funds out of pocket, or selling off assets to cover the difference.
Expanded Coverage Limits
What makes an umbrella policy particularly beneficial for those with significant assets is its simplicity and full range of protection. For one single premium, it expands coverage limits over a broad risk territory. It stretches over many of your business activities, protecting the business as a whole and your employees while they’re working.
Business owners must first evaluate the risks they face. Consider factors such as how much public contact (customers, suppliers, partners, other associates) your business has and the potential for lawsuits. Note that the more employees you have, the more risks you have also. With professional services business like a law firm or a medical practice, commercial umbrella insurance will not apply in situations where malpractice or other professional liability coverage would be needed.
It is extremely important to remember that in addition to business insurance, an umbrella policy is particularly important for business owners. Judgments can be much bigger for businesses than for individuals. One small accident on your business property may be enough to shut down your business permanently.
Don’t wait for disaster to strike. New Jersey business owners, contact Tri-State today to learn more about how you can expand your insurance coverage.
About Tri-State Insurance Agency
At Tri-State Insurance Agency, we want to ensure your high-net-worth homes are protected during the holidays and year-round. Our homeowners’ insurance policies are designed specifically to protect affluent homes like yours. To learn more about our coverage options, contact our specialists today at (973) 579-6776.