Umbrella Coverage is The Smart Move for Your Business
The reasons to purchase insurance are well known, but what about umbrella coverage? It’s not just for catastrophes anymore. After reading this post you will begin to see why having an umbrella policy is a cost-effective way to further protect the business you’ve worked so hard to build.
Regardless of the business type, companies of all sizes can experience losses that call for an umbrella policy. According to the U.S. Chamber of Commerce, small business owners pay more than $35 Billion per year in out-of-pocket costs for claims that exceed what their primary insurance covers. $35 BILLION OUT-OF-POCKET! You don’t want to add to the total…
There are many reasons to purchase umbrella coverage. To save you time we narrowed the list down to 10. Click through the slides to learn more..
1. It Protects What’s Most Valuable
An umbrella policy is smart business and provides greater peace of mind. It protects your employees, assets, hard work, reputation, and future.
2. A Million Dollars Isn’t What it Used to Be
Original ISO Policy limits were set at $1 million in 1985. In 2015, the coverage equivalent of that limit was just $226,000. The cost of inflation reduced coverage by 77%!
3. Losses are Increasing
Multimillion-dollar settlements are becoming much more common. Advances in medical technology and prescription drugs have increased the costs of medical care, and new exposures with no historical loss experience (e.g., technology, foreign liability, identity theft, global warming) are on the rise.
4. It Safeguards Against Auto Exposure
Auto crashes are the leading cause of umbrella claims. In the U.S., there’s one auto related injury every 13 seconds and one fatality every 15 minutes. Cars are just as likely as large trucks to cause a severe accident, and the driver distractions are growing due to interactions with phone calls, texting, and GPS.
5. The Worst Can Happen
Every business has a severity exposure:
6. Settlement Awards and Tort Costs Are Rising
Today’s primary limits may not be enough for claims that take years to settle. Even though a claim may take several years to resolve, a jury will often consider and award in “current” dollars.
7. Contractual Requirements Must be Met
Umbrella policies allow you to respond quickly and more affordably to changes brought about by lease, job site, vendor, and municipal requirements.
8. It Ensures Business Continuity
Legal Costs, Judgment awards, and settlements outside existing policy limits can cripple a business. Consider who will pay defense costs, manage a large claim, manage a claim in a faraway jurisdiction, and find the right legal experts to handle a complex claim.
9. It’s a Great Value
Umbrella policies offer additional protection at a reasonable cost. Here are some sample losses compared to annual premium.
10. Deep Pockets Attract Claims
Your business’s prominence can make it a target for legal action, even when there’s a small percentage of question of actual liability.
Not all Umbrellas Are Alike
You’ll be best served by an umbrella provider, like Bisnett Insurance, that knows the ins and outs of large legal and medical scenarios and adds value by showing you how to reduce risk or offering crisis management support.
Contact Us Today:
Adding an Umbrella Coverage could potentially save everything you’ve worked for. We are standing by for all of your insurance needs. Call us at 503.635.4482 or fill out a Contact Form. We will get back to you as soon as possible. You can also follow us on Facebook, Twitter, Instagram (@BisnettInsurance), and Youtube.
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