Top 10 Reasons to Buy Umbrella Coverage for Your Business
The reasons to purchase insurance are well known, but what about umbrella coverage? It’s not just for catastrophes anymore. Please review the following list and see if you agree that having an umbrella policy is a cost-effective way to further protect the business you’ve worked so hard to build.
It Protects What’s Most Valuable An umbrella policy is smart business and provides greater peace of mind. It protects your employees, assets, hard work, reputation, and future.
A Million Dollars Isn’t What It Used to Be Original ISO policy limits were set at $1 million in 1985. In 2015, the coverage equivalent of that limit was just $226,000. The cost of inflation reduced coverage by 77%!
Losses Are Increasing Multimillion-dollar settlements are becoming much more common. Advances in medical technology and prescription drugs have increased the costs of medical care, and new exposures with no historical loss experience (e.g., technology, foreign liability, identity theft, global warming) are on the rise.
It Safeguards Against Auto Exposure Auto crashes are the leading cause of umbrella claims. In the U.S., there’s one auto-related injury every 13 seconds and one fatality every 15 minutes. Cars are just as likely as large trucks to cause a severe accident, and driver distractions are growing due to interactions with phone calls, texting, and GPS.
The Worst Can Happen Every business has a severity exposure:
Retail – premises safety
Restaurants – foodborne illness
Manufacturers – past, present, and future products
Warehouses – what is stored and how
Hotels – fire, carbon monoxide, crime
Contractors – falls from heights, noise, high property values
Settlement Awards and Tort Costs Are Rising Today’s primary limits may not be enough for claims that take years to settle. Even though a claim may take several years to resolve, a jury will often consider an award in “current” dollars.
Contractual Requirements Must Be Met Umbrella policies allow you to respond quickly and more affordably to changes brought about by lease, job site, vendor, and municipal requirements.
It Ensures Business Continuity Legal costs, judgment awards, and settlements outside existing policy limits can cripple a business. Consider who will pay defense costs, manage a large claim, manage a claim in a faraway jurisdiction, and find the right legal experts to handle a complex claim.
It’s a Great Value Umbrella policies offer additional protection at a reasonable cost.
Deep Pockets Attract Claims Your business’s prominence can make it a target for legal action, even when there’s a small percentage or question of actual liability.
Not All Umbrellas Are Alike
You’ll be best served by an umbrella provider that knows the ins and outs of large legal and medical scenarios and adds value by showing you how to reduce risk or offering crisis management support. Call us today at All About Insurance to find out how we can help your business with this type of coverage.