If you own a business, you’re at special risk for liability that most other people will never experience. Because of this increased liability risk, you want the proper insurance protection. At Peninsula Underwriters Insurance Agency, which serves Gainesville, FL, and the surrounding areas, we provide umbrella insurance policies that greatly benefit business owners. Here are a few things you should know about this type of coverage.
What Is Umbrella Insurance?
Umbrella insurance is a special type of policy created to cover additional liability expenses if a policy has already been paid out. If a policy pays out to the maximum it was purchased for, then it’s considered to be exhausted. Once a policy is exhausted, no more money will be paid out. If there are still expenses remaining, the individual is responsible for those costs.
An umbrella policy can be added to your other policies. This type of policy will then kick in if the previous policy was exhausted and will pay for additional expenses.
Why Does This Benefit Business Owners?
This can greatly benefit business owners because they have a lot to lose if they are held liable. If your existing policies can pay for liability, the legal system can come after your business and investments. This could have long-term negative effects on your company.
Business owners are at risk for many types of liabilities, including injuries on commercial property or through the use of products or services. Their equipment, property, and inventory are also at risk. An umbrella policy can help reduce the amount of financial risk they are vulnerable to.
If you’d like to learn more about umbrella insurance, please contact us at Peninsula Underwriters Insurance Agency, serving Gainesville, FL, and the surrounding areas.
