Lawsuits are commonplace for many businesses today. If you have a business, eventually someone will sue you or file an insurance claim against you. Your company probably already has liability insurance in place to cover most claims against it, but does it have excess liability insurance? If not, take a moment to think about what could happen if someone files a claim against your business and you don’t have sufficient insurance coverage.
Excess liability coverage protects businesses by picking up where their standard business liability leaves off. It is additional coverage that ensures protection from excessive lawsuit claims or awards so that you don’t face having to liquidate assets or go out of business in order to pay a claim against your business.
Today’s court settlements can be outrageous, with awards in the millions of dollars. A small business often doesn’t have the assets to pay off an award like this after its standard liability coverage is maxed out. Investing in excess liability insurance or an umbrella policy is the ideal way to protect your business from financial ruin. Don’t make the mistake of wishing you had the coverage after an award is made – protect your company now and in the future by augmenting your liability insurance with excess liability coverage or an umbrella policy.