Many business owners may question the value and the necessity of umbrella insurance. Whether or not to carry umbrella insurance is a personal decision. However, there are some cut-and-dried reasons that may help you determine whether this type of insurance will be beneficial to your business. Our team at Fuqua Insurance Agency is happy to help Tallahassee, FL customers navigate umbrella insurance.
What is Umbrella Insurance?
In short, umbrella insurance is supplemental insurance designed to extend policy coverage levels. Primary insurance is applied first and umbrella insurance kicks in to cover anything that exceeds the coverage levels of primary insurance. This insurance is beneficial in terms of unexpected events like lawsuits, accidents, and liability claims, to list a few.
Who Needs It?
If you’re a business owner who could experience a loss of profit or go bankrupt in the event of a legal judgment against your business, you may want to consider umbrella insurance if the judgment might exceed coverage limits. In addition, you may have customers that require this type of insurance as protection against unexpected accidents. Businesses with company cars or extensive travel may also benefit from umbrella insurance. Company vehicles, like any vehicle, can be involved in traffic accidents. The extra coverage may be beneficial for covering this type of risk.
Other Considerations
If your business has an element of risk and danger associated with it, umbrella insurance may be a practical consideration. For example, if you make toxic or hazardous products or undergo a manufacturing process that could be dangerous to employees, umbrella insurance may be the perfect safety net once primary insurance limits have been met. Ultimately, the decision is yours. Umbrella insurance may be a benefit even if you don’t have a high-risk business just to create peace of mind in the event of something unexpected happening. Our team at Fuqua Insurance Agency would be happy to walk you through the ABCs of umbrella insurance to help you make a decision. Give us a call. We’re standing by.
