When does a business need umbrella insurance?

Umbrella insurance is relatively new, but it can be an extremely valuable coverage to businesses that operate on tight profit margins.  This coverage is meant to cover a variety of scenarios that can easily throw a small business into a tailspin.

Umbrella policies are designed to pay for events when a business’ primary insurance policy will no longer pay.  Depending on exactly how the policy is written, this can mean that the policy covers damages beyond a coverage cap set by the primary policy and/or it covers expenses that are not covered by the primary insurance policy.

Typically, businesses that are at high risk of having claims made against them are good candidates for umbrella insurance.  Contractors and other construction businesses, for example, are at risk for expensive and frequent worker’s compensation and customer claims.  While a primary insurance policy would pay for a good portion of these claims, a month with an unusually high number of claims could easily reach a company’s coverage limit.  This is where the umbrella policy would kick in and pay for these “extra” claims.

An umbrella policy can also provide coverage for items that are not part of a primary policy.  For example, it can provide funds to replace lost income or other secondary expenses in the event of a natural disaster or other types of claim on a primary policy.  These expenses could include help with legal fees, legal settlements, lost wages for workers, and/or insurance deductibles.

Every umbrella policy is different.  That’s why it’s important to talk to the agents at 1st American Insurance Agency to figure out the terms and conditions of an umbrella policy that’s right for you.

Starting a business in Lafayette, CO: You need commercial insurance

Starting a business can be very exciting, and Lafayette, CO is a great place to get your new company off the ground. If you’re doing more than an online store or service, though, you’ll need a physical location. Once you find the perfect place in  Lafayette and buy it or sign a lease, it’s time to start thinking about insurance. Even if you operate a business out of part of your home, you may still need commercial insurance. It’s very important that you protect yourself financially, and that you protect your customers, too. That means getting the right policy, so you have less to worry about.

Your commercial insurance policy should cover you for liability and other issues, and it’s important to ask your insurance agent plenty of questions about what you need and what you’re getting. Don’t just accept any policy that’s suggested to you. It might not be the right one for your Southfield business. If you arm yourself with knowledge, ask questions, and get a good agent to help you, you’ll have a much better chance of getting the commercial insurance policy that’s going to be perfect for your company.

By working with 1st American Insurance Agency, you can get the commercial insurance policy your Lafayette, CO business needs. Whether you call, come in, or go online, finding out about commercial policies and thinking about your actual insurance needs are the first steps toward getting a policy that will protect your business for the long term. Don’t forget to check with your agent periodically once you have a policy, too. That way you can make sure the policy you have is still meeting the needs of your growing business. You may not have enough coverage, or you may need the areas that are covered adjusted, and your agent can help with that.

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