Small Business

Umbrella Insurance

What is Umbrella Insurance

Small business umbrella insurance is a type of liability insurance that provides additional coverage above and beyond the limits of a business’s primary liability insurance policies. Umbrella insurance is designed to protect businesses from financial losses and legal liabilities that exceed the limits of their primary policies, which typically include general liability, commercial auto liability, and employer’s liability insurance.

Umbrella insurance can provide an additional layer of protection for a business in the event of a catastrophic incident or lawsuit. It can help cover costs associated with legal defense fees, settlement payments, and other expenses that exceed the limits of a business’s primary insurance policies. The umbrella policy provides excess liability coverage, which means it only pays out after the primary policies have been exhausted.

 

What happens if your business is sued and the judgment amount exceeds the liability limits of your primary insurance policy, or you have multiple claims and the limits are exhausted? Not having adequate coverage for lawsuits can leave your business exposed. Umbrella insurance can help address these risks.

• Legal costs
• Medical bills
• Damage to other people’s property
• Judgments and settlements

Here are some of the benefits of business umbrella insurance: 

1. Additional Liability Coverage: Business umbrella insurance provides an extra layer of coverage beyond the limits of your primary liability policy. This means that if you are sued or held liable for damages beyond the limits of your primary policy, your umbrella insurance will provide additional coverage up to the policy limits.

2. Increased Financial Protection: Business umbrella insurance can help protect your business assets and reduce your financial losses in the event of a major lawsuit or claim. This type of insurance can also provide coverage for legal fees, which can help reduce the cost of defending yourself in a lawsuit.

3. Comprehensive Coverage: Business umbrella insurance is designed to provide comprehensive coverage for a wide range of potential claims and lawsuits. This type of insurance can provide coverage for claims related to slander, libel, negligence, and other issues. 

4. Affordable Coverage: Business umbrella insurance is typically less expensive than other forms of liability insurance. This makes it an affordable way to protect your business from financial losses due to claims or lawsuits. 

Umbrella insurance is not necessary for all small businesses, but it can be a valuable addition for those that face higher risks and potential liabilities. The specific coverage needs will depend on the size and nature of the business, as well as the types of risks it faces. It’s important for small business owners to speak with their GSI insurance agent to determine the appropriate coverage for their specific needs.