Delaware Business Insurance Update From CNC Insurance Associates, " Understanding Umbrella Policies" 7-2-16

Many small business owners get confused when it comes to insurance. It can be down right intimidating.  Understanding the umbrella policy is one of those intimidating items. Every small business owner needs one but only a low percentage actually have them in place.  So let's take a few minutes and clarify what the umbrella policy is and why you should buy one.
An umbrella policy is extra protection over your business policy, auto, and work comp all in one form. It is also very inexpensive when compared to other lines of insurance. An umbrella policy can also add extra limits of liability coverage even if you only have one underlying policy. You do not have to have a lot of other policies to have an umbrella. So if you only have a business owners policy covering your small business and no auto or work comp, you can still have an umbrella policy over top adding an extra limit of coverage. Most umbrella policies add another 1,000,000 of coverage, but this limit can be increased to 2,3,4,5, or 10 million depending on your need. The premium per added layer decreases as you go higher, which is why the umbrella can be a bargain compared to other policies of insurance.
Why do you need one?  Today's business environment is litigious. The main reason for the umbrella policy is to have the necessary limit of coverage if you are hit with lawsuits. The added protection  is peace of mind as you go about your business day.  So talk with your insurance professional and add an umbrella policy for the bargain it is and the peace of mind it gives. Until next time be careful out there and know your risks.

G. Kevin Nemith , President CNC Insurance & The Small Business Insurance Center
Serving De, MD, NJ, PA, and VA
www.cncinsurance.com
www.bizinsurancetv.org


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