When it comes to insurance policies, there are few that are as useful as umbrella insurance policies. After all, what happens when your standard business insurance, liability insurance, and other policies aren’t large enough to cover the unexpected damage or handle all of the repairs needed? You or your business could end up paying for those extra costs out of pocket, which can have extremely damaging results.
But there’s an answer. Instead of leaving your business vulnerable, consider getting an umbrella liability policy. What do these policies cover? And why are they good investments? Here’s what you need to know.
What Is an Umbrella Policy?
The name of this type of insurance policy says it all: it provides an umbrella of liability coverage, kind of like how an umbrella protects you from the rain. These policies are a type of liability insurance, meaning that they kick in when your standard liability and similar business insurance fails to provide ample coverage.
For example, if you have a standard liability policy on your business that provides up to $50,000 in coverage, but your company gets sued for $100,000, your umbrella policy will kick in at the end. Your liability insurance will pay for the first half of the settlement, and the umbrella insurance will cover the other half. This way, you aren’t paying for anything out of pocket. Depending on the size of your company and its overall financial health, your umbrella insurance could end up saving the business, preventing it from ending up in bankruptcy.
Of course, this is just an example. Your umbrella insurance policy can also come in handy in a number of situations.
Why Is an Umbrella Policy Considered a Good Investment?
In the business world, it’s important to invest in things that can save your company money. While adding an additional expense to the list seems counterintuitive, when it comes to insurance, it’s always a good idea to pay for that extra item. After all, an umbrella policy can:
Protect Your Company’s Bank Account – Getting sued over a faulty product or subpar service is never fun and can lead to bankruptcy if your company has to pay for legal fees and settlement costs out of pocket. An umbrella policy can cover these unexpected costs, making it a strategic way to save money.
Provide Additional Coverage, Just in Case – No one can predict the future, which makes insurance policies, like umbrella coverage, a proactive necessity. An umbrella policy can kick in when your other policies fall short, helping you cover numerous costs that you would ordinarily pay out of pocket.
Contact Spivey Insurance
Do you need an umbrella insurance policy for your business? Are you wondering how one can help you save money and prevent you from having to pay for legal fees and settlement costs out of pocket? If so, you need to contact Spivey Insurance. Our knowledgeable agents can answer questions that you have, as well as find the right policy for your company’s needs. Reach out to us today to get your umbrella policy in place…just in case!
