No matter what kind of professional or specialty service business you own – a publishing company, a law office, a translation service, an environmental consulting firm – Umbrella Liability Insurance can add extra liability coverage to your business protection plan.
Why would you need extra liability protection? As you may already know, your insurance policies cannot offer your business unlimited protection. Each policy you carry comes with a “policy limit,” which details the maximum amount of financial benefit your company can receive on a claim. Umbrella Insurance offers protection for those times when a claim ends up costing more than your policy limit.
Let's say you own an independent publishing company that specializes in poetry and literary fiction. The recent publication of a poet's first book is met with critical acclaim, but an ex-lover of the poet claims the book contains libelous information, which caused him to lose his high-profile job. He sues for personal injuries – and the bill isn't cheap.
Your General Liability Insurance includes provisions for personal injury claims, but this battle looks like it's going to be about $20,000 more than your policy will cover. Without Umbrella Liability Insurance, your business would be responsible for footing the bill on its own – a nearly impossible task for a small press that, given its specialties, is not exactly in it for the money.
How Coverage Works: Umbrella Insurance for Professional and Specialty Services Providers
Umbrella Insurance protects professional and specialty services businesses by increasing the policy limits on existing liability insurance policies. That's right, it can boost multiple business insurance policies at once – and for $1 million at a time.
In order to decide whether additional liability protection is right for you, it's best to assess certain areas of your business's risk. Umbrella Liability Insurance can increase the policy limits of your…
- General Liability Insurance. This policy covers exposures from third-party bodily injury, property damage, medical expenses, liquor liability, advertising, and, as we already saw, personal injuries. The more people (clients, industry professionals, the public) your business deals with on a regular basis, the more risk you have for an expensive General Liability claim.
- Cyber Liability Insurance. If your business handles sensitive client information – addresses, phone numbers, bank account information, credit card numbers – over a computer network, you've probably already looked into Cyber Liability Insurance. Knowing how expensive these claims can be, it's a relief to know that Umbrella Insurance can boost this protection even more.
- Employer's Liability Insurance. If you have employees, you likely already carry Workers' Compensation Insurance. Umbrella Insurance can boost the Employer's Liability part of the policy, the one that protects business owners in the event that they are sued by an employee for a work-related illness or injury.
For business owners who carry a Business Owner's Policy (BOP), an Umbrella policy can boost the General Liability portion of the package.
If your business faces one of more of the above exposures, consider adding Umbrella Liability Insurance to your insurance plan.
How Much Does Umbrella Insurance Cost for Professional or Specialty Services Business Owners?
Yes, Umbrella Insurance is sold $1 million at a time – which admittedly sounds quite expensive. But in reality, Umbrella Insurance is one of the most affordable plans on the market. It generally costs business owners only a few hundred dollars each year – less than many of us pay for coffee.
Umbrella Insurance is often a great deal, but it's important to remember a few caveats before deciding to buy an Umbrella policy:
- Umbrella Insurance can't cover everything. It's true that Umbrella Insurance can affect several policies at once, but it cannot boost every liability policy you own. For example, Umbrella Insurance cannot extend the limits of your Professional Liability Insurance policy.
- It helps to work with your current insurance agent. Working with an agent who is already familiar with your business, its needs, and the coverage provided by its existing insurance policies increases your odds of securing Umbrella coverage that suits your exposures. Plus, partnering with a single agent is a good way to avoid coverage gaps or unnecessary duplicate coverage.
Extra liability protection might not be for everyone provider of professional or specialty services. But it does have the power to protect your business from the high cost of liability claims. And because Umbrella coverage is often available at relatively low rates, it doesn't hurt to get a free quote.
Umbrella Liability Insurance Quotes for Professional and Specialty Services Businesses
When you are ready to receive Umbrella Liability Insurance quotes for your professional or specialty service business, call an insureon agent. Our agents are familiar with the needs of businesses like yours and will be happy to answer any questions you may have. You can also fill out our online application to have your quotes sent directly to your inbox.