As Risks Rise, You Need a Commercial Umbrella
As a responsible business owner, you no doubt make sure that you are properly insured for any liabilities resulting from damage to other parties.
But, imagine the following scenarios:
- What if a visitor trips and falls at your business, breaking a leg and is unable to work for a few months while they recover?
- What if a customer suspected of stealing later proves his innocence and sues for defamation of character?
- What if one of your employees, driving a company truck, rams into a passenger car severely injuring some of the occupants?
The costs of a large financial settlement could surpass the primary liability limits of your existing insurance policies, leaving your business responsible for the rest of those costs. And a high-cost accident or lawsuit could potentially put your company out of business.
To avoid any of these scenarios, it’s wise to carry a commercial umbrella policy, which will essentially pick up where your primary insurance leaves off — or runs out.
All of your policies have limits. Once those limits have been breached, the other party can sue and go after your firm’s assets. Breaching those limits is getting easier due to the increasing prices of vehicles as well as health care costs, should the other party suffer physical injuries.
An umbrella policy will also cover you for liability for which there is no primary insurance, or when a primary policy includes an exclusion that the umbrella policy doesn’t.
Unfurling the umbrella
An umbrella policy will kick in after limits are breached for:
- Commercial general liability (bodily injury, property damage, personal injury, defense costs and attorney’s fees, limited contractual liability).
- Business owner’s liability.
- Business auto liability.
- Employer’s liability.
Most umbrella insurers require you to purchase primary insurance coverage before selling you an umbrella policy for example, general liability insurance, auto liability insurance, workers’ compensation or employers’ liability insurance.
Umbrella policy limits may range from $1 million to $10 million, depending on the policy and the insurance company underwriting the policy.
Excess liability
If your company operates in a business area that has potentially higher liabilities, you can secure an excess liability policy that kicks in after the umbrella policy is breached.
This coverage provides extra liability limits over an umbrella policy. It typically follows the terms of the first underlying insurance policy.
Higher limits may be necessary for businesses with high loss potential, high profile, sizable sales, numerous assets, large auto fleets, a worldwide presence, and/or significant public exposure.
The takeaway
Every business is at risk of being sued at some point, and some companies see more litigation than others. It’s important that you carry the appropriate amount of liability coverage to account for the most common risks your business may face.
BGES Group’s office, located in Larchmont, NY is a full service insurance agency offering, Property, Liability, Umbrella Liability, Business Auto, Bid & Performance Bonds, Inland Marine, Worker’s Compensation, Worker’s Compensation Premium Recovery, New York State Disability, Group Health, Life insurance, Personal lines and Identity Theft.
Special Contractor Insurance Programs (NY, NJ, CT) – We we have 60+ insurance companies to market your general liability, umbrella liability, business auto, workers compensation, bid & performance bonds and group health coverages. We help contractors set up proper risk transfer. If you’re a contractor we offer extensive information about insurance markets, coverages, risk transfer, subcontractor screening, ways to lower your insurance costs.
BGES Group are Worker’s Compensation Specialists for the States of New York, New Jersey and Connecticut – Issues we address: 1) Lowering pricing – we have specialty programs that can save you up to 40%; 2) Finding a new company; 3) Replacing policies that are being cancelled or non renewed; 4) Audit disputes; 5) Company creating fictitious payroll at audit time; 6) Lowering high experience modifications factors; 7) Misclassification of payrolls; 8) Lowering or eliminating renewal deposits; 9) Getting coverage when you’ve been without for a few months; 10) Covering multiple states under one policy; 11) Eliminating 10% service or policy fees; 12) Timely issuance of certificates; 13) Always being able to get someone on the phone or by email when you need to.
If you would like to speak with us call Gary Wallach at 914-806-5853 or click here to email or click here to visit our website.
Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538
e-mail: bgesgroup@gmail.com
website: http://www.bgesgroup.com
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