Business owners who do not have the slightest idea about what umbrella insurance is should not fret. The ins and outs of what it brings to the table are going to be discussed in this article. This add-on coverage pairs nicely with commercial liability insurance. It provides organizational leaders with peace of mind knowing that their companies are protected against losses and lawsuits.
Why Might A Company Need Umbrella Insurance?
Sure, liability coverage is already there for the same purpose, but sometimes, compensation amounts are extremely high. In turn, the business's budget can take a hit if out-of-pocket expenses are incurred. Let's say that a shelf inside a warehouse topples over and kills an employee when they get struck by a forklift. If negligence or recklessness played a role in the individual's unfortunate passing, their surviving loved ones might take to the legal system to recover restitution for their loss. Should the company lose the case, they could wind up shelling out millions of dollars.
Many times, business owners don't have liability plans to protect them against such hefty sums. That is where commercial umbrella insurance comes into play. After a claim is filed—liability only pays out so much—this type of coverage picks up the remaining tab. Hence, it is easy to see why these policies are beneficial to modern businesses.
It Is Time To Look At Some Numbers
If the surviving relatives of the deceased party mentioned in the example above are awarded $2 million and liability pays $500,000, the organization will still be on the hook for $1.5 million. The majority of US businesses typically don’t have that amount in the bank. Rather, it is a sum that could lead to the liquidation of assets and perhaps even bankruptcy.
However, a company can keep such an issue at bay by having commercial umbrella insurance. The policy will cover the remaining million-dollar balance, and everybody can get back to completing projects, meeting deadlines, and making a profit. As a proprietor, you can't be too careful when your livelihood is at stake, so don't leave anything to chance. Instead, purchase an umbrella policy and give your business the protection it deserves.
Where Can Consumers Purchase Commercial Insurance?
There are plenty of options on the market when it comes to commercial insurance. Unfortunately, not all agencies are created equal. For starters, many agents get paid via commission. In turn, they may try to oversell the consumer just to increase their paychecks. Also, if inexperience is part of the equation, mistakes might be made, and the company may not really receive the protection they paid for.
Persons can avoid these kinds of headaches by turning to Panorama Insurance Agency for their commercial coverage needs. Established in 1973, our company is home to professionals who have years of experience under their belt. We strive to provide clients with only the best products at competitive prices.
Contact Panorama today to learn more about the commercial insurance options we offer.