Slips, falls, false advertising and personal injury claims. And more. Your business faces the risk of being sued every day—even if you never do anything that causes harm. In our litigious society, you face being sued just by being brave enough to open your doors.
But you also can protect yourself, your business and your livelihood by being aware of the risks you face, and by making sure you have the right amount of liability insurance. Consider what could happen if you faced a liability claim that required you to pay a $2 million settlement. In all likelihood you have general liability coverage that can help, but what is your policy limit? If you couldn’t cover the whole amount, where would the additional money come from? Would you have to liquidate all of your business assets just to settle the suit? Then what?
Despite the dire warnings, large settlements are still rare. But do you really want to take the chance that it will never happen to you? Even if someone is accidentally—innocently—injured on your business property, you could face a costly lawsuit with devastating financial repercussions. But aside from your CGL policy, what can you do? Commercial umbrella, or excess liability insurance, may be the right answer for you and The Andrew Agency can help.
Commercial Umbrella Insurance
Commercial umbrella insurance is supplementary liability coverage for the costs associated with lawsuits, legal fees and settlements. It is an appropriate and highly recommended solution for all kinds of businesses that face liability exposures. While commercial umbrellas generally cover costs stemming from lawsuits, legal fees, court awards and out of court settlements, they typically exclude protection for professional liability claims, product recalls, workers’ compensation claims, and any claims related to asbestos, pollution, war and terrorism. Commercial umbrella policies usually provide $1 – $5 million in excess liability protection, and higher limits are available for businesses that face even more significant liability exposures.
Remember, commercial umbrella insurance is excess liability coverage. This means that your primary liability policies (general liability, auto liability, employer’s liability) will cover their portion, and then the umbrella policy kicks in to cover costs that are in excess of your other policy limits. It allows you to achieve higher policy limits on several other insurance policies, rather than raising the limits on each of your other policies individually, which can be far more costly.
Contact The Andrew Agency
Do you own a business? Do you have a commercial umbrella policy as a part of your business insurance portfolio? Could you be leaving your business exposed to uncovered liability risks? We have been protecting businesses from life’s storms for more than 10 years. Contact us today in Richmond, Virginia and we will review your coverage and business activities to decide whether umbrella insurance is protection you can use. Contact The Andrew Agency at (804) 320-2886 or visit theandrewagency.com.