Personal Liability Umbrella Insurance
Personal Liability Umbrella Insurance
Why do I need personal liability coverage?
For one thing, we live in a society that is 'sue-crazy'. More and more people are starting to consider suing when something very minor happens to them. They look at tit as an opportunity to make some money. A lot of the time, it ends up being at the expense of innocent everyday people, business owners, and property owners. This insurance is an absolute must for anybody who owns a business, owns property, offers services, or anything else that the public may visit. But it may not be enough.
Who can get hurt the most?
Small businesses take a really big hit if someone sues them. A small business can find itself in a situation where there simply is not enough money to cover the cost of the settlement or the lawsuit. Remember, you have a lot invested in your business. If your company goes bankrupt or a lawsuit exceeds your insurance premium, you may personally be at risk of paying the remaining balance. Yikes!
So I should get personal liability in case my regular business policy does not cover everything?
Exactly. Nobody wants to lose their business AND their house. Personal liability insurance covers your own property if this circumstance should arise. Essentially, it is going to be an extension of any other business liability insurance you may be carrying.
What else is it good for?
It can be used as an extension of your auto insurance. Let's say the damage to the other person’s car and their medical bills amounts to $100,000, but your insurance may only pay $60,000 of that bill. If this is the case, you are personally responsible for the remaining balance. Yes, you and it will come out of your pocket one way or another.
You are essentially covering your butt in case the worst scenario happens. It may sound a little unnecessary and unlikely, but it only need s to happen to you once. Just ask people who have lost their business and then their personal assets. It is something to look into for sure.
What does it cost?
That is the good thing: it doesn't necessarily have to cost a lot, but it can mean the difference between losing everything you have or staying protected. It really is worth the small investment i the long run.
There are many different options depending on the type of business you have, so check on-line first to get some kind of idea of what kind of price you are looking at. Then, it would probably be wise to sit down with an agent to finalize the deal.
Personal Liability Umbrella Insurance
