Though it’s important for businesses to purchase general liability and property insurance, it won’t always provide sufficient coverage for every situation. Commercial umbrella insurance is a relatively inexpensive way to protect your agency. Here are 5 reasons you should add this extra coverage to help keep your business financially secure.
1. Cover Commercial Vehicles with Additional Liability
Commercial umbrella insurance provides coverage where your general liability insurance won’t. For instance, your commercial auto liability may have limitations on who drives a particular vehicle and when and where it is driven. If for some reason the vehicle is driven outside these limitations and is involved an accident, your commercial auto insurance in National City won’t cover the expenses. This is where a commercial umbrella policy takes over and provides the additional coverage your business needs.
2. Add Additional Coverage for Contract Bids
At some point, you may bid on a contract and part of the bidding process requires you to show your agency has $2 million in liability coverage. However, if you normally carry $1 million in coverage, doubling it could be cost prohibitive. A $1 million commercial umbrella policy provides the additional coverage you need at a fraction of the cost of increasing your general liability and property insurance in National City.
3. Pay for Losses in the Event of a Lawsuit
Commercial umbrella insurance coverage can be extremely beneficial if your business is subjected to a lawsuit and the plaintiff wins a judgment greater than your primary business liability coverage. Whether someone gets hurt on your premises or a production error is made that causes significant financial loss to one of your customers, a commercial umbrella policy covers the costs once the limits on your agency’s general liability policy are reached.
4. Protect Against Liens on Future Earnings
After losing a lawsuit, you may believe you are done paying for damages once your general liability insurance pays out and your earnings and assets are gone. However, this may not be the case. Based on the judge’s ruling, liens could be placed on your agency’s future assets and earnings. Purchasing National City commercial umbrella insurance can help prevent situations like these.
5. Cover the Miscellaneous Costs of a Lawsuit
Even if a lawsuit rules in your favor, you’ll still have defense costs and attorney bills. Paying those expenses out of pocket can really hurt your agency’s bottom line. If you have a commercial umbrella insurance policy, those costs are covered.
To learn more about the benefits of securing a commercial umbrella policy, contact the insurance experts at American Tri-Star in National City. In addition to commercial insurance, we also provide affordable auto, homeowners, health, and bond insurance. Give us a call today at 619-474-3900 and one of our knowledgeable agents would be happy to assist you.