Do Small Businesses Really Need Umbrella Insurance?

Small Businesses Really Need Umbrella Insurance

Do Small Businesses Really 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 that has great risks. The main function of commercial umbrella insurance is to extend your liability coverage. Liability coverage you may already have includes 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 may 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 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 a costly expense. However, when you weigh the overall costs of a small business umbrella policy, you will often find that the benefits of umbrella coverage outweigh the premiums. Umbrella coverage is often less expensive than individually extending the coverage on all your policies.

Don’t wait until your business is at risk to find out that your coverage is insufficient. Start by talking to a professional agent at KSD Insurance Agency to secure reliable commercial umbrella insurance. We serve business owners in Illinois, Wisconsin, and Indiana – Contact us today to get started!

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