Business Umbrella Insurance in Oklahoma
What is Business Umbrella Insurance?
Business Umbrella Insurance, just like Personal Umbrella Insurance, is designed to extend the liability coverage limits beyond the limits of your other insurance policies, also known as the underlying policies. It can provide $1 million or more in additional liability limits. Just one commercial umbrella policy is needed to increase the limits of each of the other policies, for example, general liability, commercial auto liability, and employer liability (which covers the legal expenses of employee injuries).
Why do I need Business Umbrella Insurance?
Insurance policies have limits to help keep premiums at an affordable rate. These limits also help insurance companies to be able to meet their financial responsibility when a client has a claim and needs payment. Sometimes a claim can reach beyond the limits in the policy. When this happens, the insured pays additional costs out of pocket or they go unrecovered. An umbrella insurance policy would then come into play and provide the extra coverage that the underlying policy can not. Having an umbrella policy gives you an additional $1 million or more to put towards claims that exceed the limits of your other policies.
Say you have $1 million in liability coverage on your Business Owners Policy. If someone were to hold you responsible for a $1.5 million claim, the business umbrella policy would help to pay for the additional $500,000 of the claim. This helps prevent the entire additional $500,000 from having to be paid out of pocket by the insured.
Business umbrella insurance can also provide coverage for situations that might be excluded from other policies such as being accused of slander or libel. As mentioned above, you can also purchase umbrella policies for personal purposes. For more information on Personal Umbrella Insurance Policies, click here to visit our webpage about them!
Having a business umbrella insurance policy is a cost-friendly way to protect your business from high-costing claims in the future. Even if you think that your current policy limits are high enough, an umbrella policy is always a cost-effective way to ensure you have extra protection.