Almost every business owner understands the fundamentals of liability, but few grasp what it really means to ensure that your business is protected against the most devastating and costly liability claims. In fact, you might think that your small business has sufficient liability coverage as part of your commercial insurance policy, but the fact is that business owners, especially small businesses, need to think bigger when it comes to liability protection. In a society where everything from social media posts to refusing a customer can land you in court, it's important that your company is as protected as it can possibly be. Here's a look at what you need to know about liability umbrella insurance for your company.

What Is Liability Umbrella Insurance?

A liability umbrella policy is liability insurance that kicks in only when your existing liability coverage is exhausted in a claim. If you face a serious liability issue, whether it's an injury on your property or a staff member posting something offensive on your company's social media, you need to be prepared with enough insurance coverage to protect your business. Otherwise, you risk losing assets, and potentially your business, as a result of the incident.

How Does Liability Umbrella Insurance Work?

Your standard commercial insurance policy will provide you with a certain level of liability protection. That protection is your first line of coverage, and it must be insufficient to cover the total cost of the claim before your liability umbrella will kick in.

There's typically a deductible associated with a liability umbrella as well. Your company will have to be prepared to pay this deductible amount before the coverage will kick in to cover the remainder of the costs.

What Does Liability Umbrella Insurance Cover?

Many business owners dismiss the added expense of a liability umbrella policy as unnecessary if they have liability coverage as part of their commercial policy. However, the truth is that liability umbrella insurance offers broader coverage than traditional liability coverage lines, so you may find that your company's liability umbrella offers protection for things that your company's commercial business insurance just won't.

Make sure that you take the time to read the policy declaration pages and the policy exclusions any time you're shopping for liability coverage for your business. If you want to ensure that your company is protected no matter what kind of liability claim you face, you'll need to be sure of what the policy does and doesn't cover.

These are some of the things every small business owner should know about liability umbrella coverage for their company. Talk with your commercial insurance agency today for more help and information about the umbrella policies available to you.

For more information, contact an agency like United Counties Insurance Group.

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