Some business situations come with additional risks. Even if your business operations don’t inherently produce excess risk, you may encounter customers who claim you acted inappropriately and caused them harm. You can protect your business in West Bloomfield, MI, with excess liability insurance, which provides an extra layer of protection against various risks. Phil Klein Insurance Group can help you find the right coverage to safeguard your business from excessive risks.
Umbrella Insurance Provides Excess Liability Coverage
Some businesses face more risks than others. For instance, if your company operates in the construction industry, you may encounter risks from injuries or destructive events involving clients and visitors to your construction sites. While standard commercial insurance policies offer liability protection, certain situations can exceed the limits of these policies. Umbrella insurance provides an added layer of protection beyond your basic coverage. An umbrella policy can be the difference between maintaining your company’s operations and losing it due to an expensive lawsuit.
When Does Umbrella Insurance Apply?
If someone sues your business because they are dissatisfied or believe you acted negligently, your primary business insurance policies will handle the initial claims. However, these protections may not be sufficient when lawsuits reach hundreds of thousands or even millions of dollars. Umbrella insurance kicks in once you’ve exhausted the liability limits of your standard commercial insurance policies. For example, if your commercial insurance policy has a liability limit of $500,000, an umbrella insurance policy will cover claims and court costs exceeding that amount. Umbrella insurance provides coverage regardless of whether you are found liable, often making the difference between keeping and losing your business.
Learn more about how umbrella insurance can protect your company. Schedule a consultation today with Phil Klein Insurance Group, serving West Bloomfield, MI.
