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Umbrella Insurance

Why You Need Umbrella Insurance
No one really expects a disaster to strike his or her business. But every small business is vulnerable to a major catastrophe or a huge lawsuit. Think about some of the devastating losses you've heard about recently. Or the large settlements that are awarded in courts these days. Some of these losses could exceed your primary insurance coverage…unless you protect your business with umbrella insurance.

What Umbrella Insurance Is
As its name implies, umbrella insurance extends your coverage beyond the limits of your basic business insurance. Umbrella insurance is important because it covers unsuspected events. It's not expensive and in certain instances, it could literally save your business.

How Umbrella Insurance Works
Umbrella insurance policies provide additional liability insurance coverage after the limits of your underlying policy are reached.

For example, if several people were injured on your property and required $1.5 million in medical treatment but the liability limit of your underlying policy is $1 million, your umbrella insurance policy would cover the additional $500,000 (if you're found liable).

Cost of Medical Treatment     $1,500,000
Your Basic Liability Limit     $1,000,000
Umbrella Policy Would Cover the Gap     $500,000