6 Reasons for your Small Business to Purchase Umbrella Coverage
The reasons to purchase insurance are well known, but what about umbrella coverage? It’s not just for catastrophes anymore. Regardless of the business type, companies of all sizes can experience losses that call for an umbrella policy. 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.
1. It Protects What’s Most Valuable
An umbrella policy is smart for businesses and provides greater peace of mind. It protects your employees, assets, hard work, reputation and future.
2. 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%!
3. 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.
4. 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.
5. 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.
6. It’s a Great Value
Umbrella policies offer additional protection at a reasonable cost. Here are some sample losses compared to annual premium: A $3.4M auto liability loss from $1,845 in umbrella premium, a $5M hotel fire loss from $4,400 in umbrella premium and a $7.5M warehouse fire loss from $8,900 in umbrella premium.
Give your business the coverage it needs with umbrella insurance from BB Insurance Marketing. Contact us right now for more information or fill out the free, no obligation form to receive a fast quote. BBIMI’s insurance expertise extends all across the state, so we’ve got you covered with a quality policy you can depend on!