Although many business operators know that an umbrella insurance policy provides protection against the risk of being the target of a high-dollar lawsuit, too many neglect to obtain this important insurance protection. They mistakenly believe that they are not vulnerable to the possibility of being sued for $1 million or more.
However, any of these business owners whose employees operate a vehicle as part of the conduct of business should think again.
According to the leading reinsurer of umbrella liability risks, the most common source of commercial umbrella claims is insured businesses' use of automobiles in the conduct of business. A car accident can destroy others' property and can cause injury or death to others. The liability implications can be enormous.
Remember that business owners insurance policies put a limit on the amount of liability they can cover — usually a $1 million cap. An umbrella policy covers additional liability exposure beyond the limit of the business owners policy.
If you or any of your employees use vehicles in the course of business — traveling for sales or shows, running to the bank to make deposits, picking up materials or supplies, etc. — your business is at risk. Be sure you have commercial umbrella liability coverage to protect your life's work. Call your agent to ensure that you're adequately covered.