Many businesses have special risks that may not fit neatly into a general category of commercial insurance coverage. Sometimes policy limits for certain insurance coverage need to be higher to cover the potential risk. Having umbrella insurance can help.
What does umbrella insurance do?
You should talk about the details with your agent at Nest Insurance Agency, serving Amarillo, TX and the surrounding area, to learn more about your particular circumstances and insurance needs.
Here are some illustrations about how smart business owners use umbrella insurance to reduce their risks.
Raise Policy Limits
A small business owner operates a successful bakery. She carries all the commercial insurance types she needs for the business including worker’s compensation, commercial vehicle insurance, property & casualty, product liability, and general liability. She is concerned that some policy limits may be too low to protect her from a lawsuit. Her net worth is around $5 million.
She does not want to raise the policy limits on each of her other commercial insurance policies. It would cost too much to raise the limit for multiple insurance policies. Instead, she gets $5 million in umbrella insurance that provides extended coverage after any of the other policy limits have been exhausted by a covered claim.
Cover More Risks
A business owner in the entertainment industry is worried about claims that may come up in the future for sexual harassment. A review of existing policies determines that these claims are specifically excluded and there is no insurance coverage for them. An umbrella insurance policy with a high limit is taken out to provide coverage for these claims.
Every business in America deals with lawsuits. The defense of them is expensive. Umbrella coverage can be put in place to pay legal expenses for certain types of cases.
Umbrella insurance can be used to cover risks that are unusual such as damage caused by cyber crimes, terrorist attacks, copyright, intellectual property, defamation, and slander cases. There are ways to insure many unusual things using umbrella insurance.
Talk with your agent at Nest Insurance Agency in Amarillo, TX by calling 806-476-2580 to get a quote for any insurance you need for unusual risks.