Effective business insurance policies contain comprehensive protection and flexibility. Liability protection does, however, contain a limit. Commercial coverage, fleet insurance and business insurance components can protect both an individual and business, but expenses may exceed financial limits. A business insurance umbrella policy is useful when facing the unexpected. Businesses require a “buffer” when acquiring financial protection, and an umbrella policy can protect valuable assets.
Umbrella Coverage Explained
Even businesses maintaining general liability coverage are at risk. Repairs, settlements and judgments are sometimes capable of exceeding a policy’s predetermined limits. General liability coverage is, itself, effective. However, several industries face increased liability risks. These risks warrant enhanced protection.
Out-of-pocket expenses are fiscally damaging, but umbrella insurance serves policyholders by adding an additional “layer” of insurance protection. Obtained with a single premium payment, umbrella coverage can “absorb” expenses impacting the following policies:
- General liability insurance
- Commercial fleet insurance
- Property insurance
- Employer’s liability insurance
How Does Umbrella Coverage Absorb Expenses?
Umbrella insurance can absorb additional expenses following a settlement. If an insurance policy fails to pay sums in whole, an umbrella policy pays additional amounts. Generally, umbrella insurance is highly affordable, and it offers an effective method of raising preexisting policy limits. While an umbrella policy may not extend professional liability insurance limits, they’re highly applicable to a variety of customized policies.
Why is an Umbrella Insurance Policy Useful?
Business owners can protect their assets through an umbrella insurance investment. Facing legal settlements requires excess insurance amounts, and asset costs can be unpredictable. Often, commercial umbrella insurance serves business owners more than high-limit policies.
Umbrella coverage is highly cost effective, and decision makers often benefit from reduced premium payments and higher limits of protection. Additionally, real estate, equipment and business property are expensive, and replacement can drain a commercial entity’s funds. Maintaining umbrella coverage is fiscally responsible, and it grants business owners significant flexibility with several relationships, including:
- Partners
- Suppliers
- Clients
- Business associates
Often, the entities associated with a business require consistent assurance in annual dealings. Umbrella policies enable extra opportunities, increase protection and apply a “safety net” to professional encounters. Costly lawsuits, damages and other expenses, when accrued, may severely damage business relationships when not buffered by a viable umbrella insurance policy.
Get the coverage you need. Call Corbett & Associates Insurance Agency at (805) 496-1424 for more information on Ventura umbrella insurance.