Most business owners believe that umbrella insurance should only be reserved for those with large businesses. However, umbrella insurance policy is meant for all types of businesses considering that every business is liable to a significant amount of risk.
Notably, the main function of umbrella insurance policy is to increase your liability limit. Your liability coverage policy can have auto liability, employer’s liability, and general liability coverage but their limits can be exceeded if the claim is serious. According to Armor Insurance Group in Virginia Beach, VA, these are a few of the ways in which umbrella coverage can help your business.
- It is very cost effective to have an umbrella policy compared to raising the amount that exceeds your liability limits
- Your coverage can be expanded to several types of policies under a single umbrella policy
- The umbrella coverage can help you cover certain claims which might not be covered by your primary liability policies
- If your business partners are of a high net worth, an umbrella insurance policy will help with high-cost lawsuit settlements
- Umbrella insurance policies will give you an overall peace of mind since you will have adequate coverage across all your policies.
Apart from helping you with liability settlements, an umbrella insurance policy will also cover legal expenses which might require a significant amount of compensation. In doing so, your business stability will not be threatened due to ongoing lawsuits.
Therefore, running a small business involves numerous expenses. As such, paying an extra fee for umbrella insurance may seem excessive. However, weighing the cost of the umbrella policy against the benefits of the coverage, you will notice that the benefits far outweigh the premiums. Undoubtedly, an umbrella coverage will be less expensive compared to when you opt to extend your policy coverage individually.
In this regard, you should consider visiting Armor Insurance Group in Virginia Beach, VA, to seek more information on the best umbrella coverage for your small business. Our agents can help answer your questions and guide you through policy limits.