Small Business Umbrella Insurance

Small business owners should always protect themselves with a commercial liability insurance policy. Commercial liability covers your legal liability in case you or one of your employees causes injury or damage to another person or another person?s property by means of one of your products, or in the course of doing your job. It usually includes lawsuits for copyright infringement or libel. There are other kinds of business liability insurance, such as professional insurance, which covers damage resulting from professional advice, or property insurance, which covers harm suffered by someone else while on your property. You should consult with an attorney or professional insurance broker about which kinds of insurance are best for your company.

In addition to purchasing primary insurance protection, you may want to consider an umbrella insurance policy. Umbrella insurance is a way to greatly extend your coverage while paying only five to eight percent the cost of your other premium. It?s a secondary policy that takes over when you have exhausted the limits of primary insurance. Most business liability insurance policies come with two types of limits. They have a per-incident limit, which limits amount of money the company will pay per claim or related serious of claims, and an aggregate limit, which limits the amount of money they will pay out over the course of the year.

Your primary insurance policy should be enough to cover all reasonably expected expenses?but sometimes the unreasonable happens. A single, catastrophic lawsuit may use up your protection for the entire year. Or you may find yourself with a string of lawsuits, if you put out a fault product due to mistakes in manufacturing. Aggregate limits came about because of lawsuits from asbestos which had been installed before anyone knew it was harmful. Businesses, and their insurance companies, got sued for millions. If the worst should happen, then your umbrella policy will take over when your regular insurance runs out, and pay up until its limit. It provides you with a lot of extra insurance for not a lot of money, and with that insurance comes peace of mind.

This entry was posted on Thursday, August 11th, 2011 at 4:32 pm and is filed under Insurance Review. You can leave a response, or trackback from your own site.

Source: http://www.insurance4properties.com/insurance-review/small-business-umbrella-insurance

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