Is Umbrella Insurance Worth It for Small Businesses?

R&R Insurance Group LLC in Quakertown, PA can help you figure out if umbrella insurance is right for your small business. As a business owner, it is important to think about every possibility that could happen and how you would be protected financially. No one wants to think about the "what ifs" in life, but they happen. That is why insurance exists — to protect us from the what-ifs. 

What Is Umbrella Insurance?

Umbrella insurance is an extra layer of protection above the liability limits on your home, auto, or watercraft policy. It also gives you broader coverage than your basic policy and can help fill in gaps in other insurance coverage. So, if you are sued or held liable for damages or injuries, your umbrella policy would provide coverage over and above the limits of your other insurance policy. 

For example: let’s say you are driving your car and causing an accident that injures another driver. The other driver sues you and is awarded $75,000 in damages. Your auto liability limit is $50,000. This means you are responsible for paying $25,000 out of pocket — unless you have umbrella insurance. Then your umbrella policy would cover the additional $25,000.

Do I Need Umbrella Insurance for a Small Business?

The answer to this question is maybe. It depends on the type of business you have, the amount of risk involved, and your financial situation.

For example, let’s say you own a small retail store. You carry liability insurance, but it has a low limit of $100,000. If someone is injured in your store and sues you, your policy would not cover the full amount of damage. In this case, umbrella insurance would be a good idea.

The bottom line is that small businesses lack the financial resources to pay for large settlements or judgments. This is where umbrella insurance can help. It can provide the extra coverage you need to protect your business in the event of a lawsuit.

So, no matter the size of your business, think about your liability risks and how you would financially handle them if they occurred.

Get Umbrella Insurance for Your Small Business Today

If you are not sure whether or not umbrella insurance is right for you, the best thing to do is speak with an R&R Insurance Group LLC agent who can assess your needs and provide a quote. We have helped many small businesses in Quakertown, PA with their insurance needs and would be happy to help you too. Give us a call today.