Although lawsuits were
once a measure of last resort, they're now used routinely
to settle disputes. And not only are suits more frequent,
they're also more expensive. Multi-million dollar awards
have become commonplace. However, legislators have
taken notice and are considering measures to cap awards.
What can business owners do to protect themselves while
legislators debate these difficult questions?
Many business owners are turning to their umbrella
coverage to provide additional limits of liability
beyond those already provided in their basic policies.
If your current business liability coverage is for
$500,000, a $2 million umbrella increases your coverage
limit to a potential $2.5 million. Umbrella coverage
is also available for other liability claims, such
as auto. Your umbrella policy covers the excess on
your basic policies. So, using the $2.5 million umbrella
policy example above, if you're sued for $1 million
and your umbrella pays $1 million on a claim, you'll
still have $1.5 million for future claims.
Of course, umbrella policy provisions and coverages
vary widely, so it's wise to consult your agent. Call
us. We can provide you with a customized review of
your liability needs and help you decide on the umbrella
that best fits your business needs.