Umbrella Liability: Protecting Your Business
The reasons you purchase insurance to protect your business are well known, but what about purchasing umbrella liability? Often thought of as an excess coverage that is for catastrophic claims, umbrella liability is becoming an essential coverage for your business. Here’s why:
• Loss Payouts Are Increasing
• A Million Dollars Isn’t What It Used to Be
• It Safeguards Against Auto Exposure
• Lastly, It Protects What’s Most Valuable
Multi-million dollar settlements are becoming increasingly more common. This is in part due to advances in medical technology which in turn increases the cost of care, and new exposures that historically have had no loss experience (i.e. identity theft and technology). In 1985, most business exposures were written with a $1 million liability limit. Today, that is the coverage equivalent of just $226,000! The cost of inflation reduced coverage by 77%! Auto accidents are the leading cause of umbrella claims. The United States currently averages an auto-related inquiry every 13 seconds, and a fatality every 15 minutes. Obtaining umbrella liability coverage IS smart business and provides you with a greater peace of mind. It protects your employees, assets, hard work, reputation & future.