You have probably heard of umbrella insurance, but do you know what it is? A lot of people associate umbrella insurance strictly with homeowners insurance as a supplement to increase limits of liability. However, the benefits of an umbrella policy can be utilized in a business sense as well. Business owners can purchase an umbrella policy as a supplement to their usual business insurance as well.

You may wonder why a business would need an umbrella policy considering most business policies cover every aspect of the business itself. Well, the main reason any business owner would want to consider it is that it can greatly increase the business’s limits of liability for a relatively inexpensive premium fee.

Considering the fact that businesses can be sued for just about anything, lawsuits can end up costing a business much more than a standard business insurance policy might cover. For example, imagine your business is running great. You want to get the word out to expand your territory, so you place a billboard in town. After about a week of the billboard being on display, you receive a complaint from a local resident who states your billboard mistakenly has HIS phone number on it instead of your business phone number.

The resident has been receiving phone calls non-stop for the past week. Since he works from home, the fact that his phone line has been tied up has caused him to lose several customers. While you might think this is a small problem, the resident is now suing you for the missed work opportunities. Your regular business policy will certainly cover you for the legal fees involved, but only to the limits of your business policy. An umbrella policy will cover the remainder of the legal fees up to its limits which are usually much greater.

If you have questions or want to hear more about how an umbrella policy can help your business, please call 1-800-869-7101 and talk with one of our licensed insurance agents here at U.S. Insurance Source.