For instance, if you own a bakery located in a building you rent, and the building catches on fire due to something you or your employees have done; what do you do? Your commercial liability insurance will cover the cost of the fire damages up to the limit set in the policy. If that amounts to only 75% of the cost of the damages, then your umbrella insurance will kick in and cover the additional 25%. It also helps cover costs like attorney fees, damages from lawsuits, property damage, and medical expenses.

Umbrella insurance is a really good deal for businesses, because it’s relatively inexpensive compared to business liability insurance, but it can’t be a stand-alone policy without the purchase of the basic liability policy.

Small businesses can really benefit from buying umbrella insurance when they have assets worth more than what’s covered in the business liability policy – if that policy doesn’t cover the costs when a judgment is made, the court could take the business itself, and even future earnings of the owners to pay the judgment.

Koch Insurance Group’s specialists are here to help you get the insurance you need. Contact them to discuss what’s possible.