Reasons Why You Should Get Umbrella Insurance for Your Small Business

July 09, 2020

A minor oversight by a manager on an employee’s work or even slight negligence by an employee of your company can lead to significant penalties like copyright infringement. There is no way to predict precisely how much your company will have to pay for the damages.

Although the chances of facing big lawsuits and substantial penalties are minimal, it can be extremely catastrophic for your business. You can lose a substantial portion of company assets, and it can become a challenge to get your business back on track. A commercial umbrella policy in Richardson, TX, keeps you from paying unforeseen expenses that can be detrimental to your business.

How Does Umbrella Insurance Work?

For instance, if you run a restaurant business and a customer falls sick after eating at your restaurant and has to be rushed to the hospital. The customer then decides to sue your business for a considerable amount to cover up for the high costs of medical bills and other damages.

So, you, along with your partners and the legal team of your company, come to a settlement with the customer for a certain payable amount. Often, the payable amount is higher than what your liability policies cover, so you will be required to pay the remaining amount. Umbrella insurance helps you out in such situations by bridging the gap between the liability coverage and the payable amount.

Advantages of Getting an Umbrella Insurance Policy

There are many ways how umbrella insurance can help your business.

  1. The issue of the unpredictability of payable amounts no longer exists.
  2. It costs less than increasing the limits of an existing liability policy.
  3. Effectively protects all assets of your business.
  4. Minimizes the damage caused to your business.
  5. Covers other personnel like employees and family members as well.

An umbrella insurance quote varies from one insurance company to another.

Adversity can strike at any time, and it is always best to be prepared! For more questions and assistance on umbrella insurance in Richardson, TX, contact the experts at Patterson & Associates. We are ready to help you with all your coverage needs.