What is Umbrella Coverage, and Why is it Critical for SMBs? 1

What is Umbrella Coverage, and Why do I Need it?

No matter how carefully you plan, accidents happen – it’s not a matter of if, but when a loss will occur. An umbrella policy is smart business and provides greater peace of mind. Should the worst happen, you’ll know that your employees, assets, hard work, reputation, and future will be protected.

What is umbrella insurance?

Umbrella coverage is a catch-all liability policy that offers protection where other liability policies leave off. For instance, without an umbrella policy, your business might be on the hook for expenses that go beyond your primary insurance coverage. This is especially common for auto accidents or slips and falls, which are among the leading cause of umbrella claims.

Why do I need an umbrella policy?

You may be thinking that as a small business owner, your exposures are minimal. Consider this: In the U.S., around 3 million people are injured every year in car accidents. Cars are just as likely as large trucks to cause a severe accident, and driver distractions are growing due to interactions with phone calls, texting, and GPS. If you or your employee should be involved in an accident, your business could be held liable for any injuries or damages.

Did you know that small business owners pay more than $35 billion per year in out-of-pocket court costs for claims that exceed their primary coverage? With multi-million dollar settlements becoming more common, an umbrella policy can save you thousands in out-of-pocket costs – making umbrella a must-have policy for small business owners.

When to Get Umbrella Insurance

The best time to protect your business against unforeseen events, accidents, and legal trouble is before something happens. You worked too hard to build your business to take unnecessary risks. Talk to your independent insurance agent, who can look at your specific umbrella coverage needs.

This website is general in nature, and is provided as a courtesy to you. Information is accurate to the best of Liberty Mutual’s knowledge, but companies and individuals should not rely on it to prevent and mitigate all risks as an explanation of coverage or benefits under an insurance policy. Consult your professional advisor regarding your particular facts and circumstance. By citing external authorities or linking to other websites, Liberty Mutual is not endorsing them.