Do Small Businesses Need Umbrella Insurance?

Your small business may lack in size, but not risks.

Many small businesses mistakenly believe that umbrella insurance is predominately for larger businesses. Generally speaking, umbrella insurance is for any business whose risks are great enough. The main function of commercial umbrella insurance is to extend your liability coverage. Liability coverage you already may have include general liability, employers liability, or hired and non-owned auto liability. If you 're not convinced that your small business needs this valuable coverage, here 's how it can help:

·             It 's more cost effective to get umbrella insurance than to raise the limits on your existing liability policies.

·             You can expand your coverage on several kinds of policies under one umbrella policy.

·             Umbrella coverage gives you extra help for covering certain types of claims that might not be covered by your other liability policies.

·             If you deal with high-net-worth individuals in your business, umbrella insurance is particularly useful in covering higher lawsuit settlements.

·             Umbrella insurance gives you an overall peace of mind that you have plenty of coverage across all of your various policies.

In addition to helping with your settlement costs, commercial umbrella insurance can cover legal expenses. As any business owner knows, legal expenses in and of themselves can be hugely significant. It 's important to have coverage for that as well so your overall business stability is not threatened. Running a small business involves many expenses, and paying for umbrella coverage on top of your regular small business insurance premiums can seem like an expensive expense. However, when you weigh the overall costs of a small business umbrella policy, you will often find that the benefits of umbrella coverage far outweigh the premiums. Umbrella coverage is often less expensive than individually extending the coverage on all of your policies. So that you have the right protection for your growing  business  in place, visit the team at Lofgren Agency to get started on your custom policy in Hudson, New York.