I have a small online business. Do I need umbrella insurance?

Many businesses benefit from the protection that insurance provides. Unexpected events and circumstances can harm day-to-day business operations and reduce profits. As a result, insurance provides the coverage many businesses need to protect their assets and profits, as well as receive liability protection. Community Management Insurance Group is committed to helping Greensboro, NC business owners get the protection they need. 

What is umbrella insurance?

Umbrella insurance is secondary or backup insurance. For example, umbrella insurance kicks in after the limits of the primary business insurance policy have been met. Once the limits of your primary insurance have been met, any coverage that is still needed is covered by an umbrella insurance policy. Umbrella insurance can sometimes act as primary insurance if the primary policy doesn’t cover a particular situation or circumstance. Umbrella insurance kicks in only after the limits of the primary insurance policy have been met and exceeded. Similar to primary insurance, umbrella insurance covers liability, property damage, injuries, lawsuits, and more. 

I have a small online business. Do I need umbrella insurance?

Maybe. Regardless of the size of your business, there are still potential pitfalls that could be harmful to your business. Umbrella insurance can provide legal protection in addition to a whole host of other protections. In short, umbrella insurance creates peace of mind when it comes to the unexpected. None of us can predict the future. However, knowing that we have a secondary insurance policy ready and available to meet our business needs, should we need it, is invaluable to many business owners. One lawsuit, accident, or injury could greatly affect your business. Umbrella insurance protects you from lawsuits, loss, theft, vandalism, and more. Of course, some businesses have more risks and vulnerabilities than others. However, many businesses, large or small, online or in 3D, want to protect their business.

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If you have more questions about umbrella insurance, call us at Community Management Insurance Group. We’d be happy to help you explore your options in Greensboro, NC. 

Who needs an umbrella insurance policy?

Umbrella insurance policies cover you when your liability exceeds what your normal homeowner’s or car insurance covers. Community Management Insurance Group in Greensboro, NC is here to help you determine if an umbrella policy would be right for you.

How an umbrella policy works

To get an umbrella policy, you would already have to have home and auto insurance. This is a lot easier if both are with the same company. If you have a business, you will have to get a separate policy for the business. The policy kicks in when your liability exceeds the limits of your insurance policy. If your insurance maximum is $500,000 on your home, and you are held liable for $1 million, you will have to pay the other $500,000 yourself. An umbrella policy will pay for that.

Who needs an umbrella?

Often it is wealthy people with a lot to lose who have umbrella policies. Sometimes people will try harder to sue wealthy people.  Most don’t try too hard to sue poor people because even if you win, you will not get the money. Retirees should also consider an umbrella policy to protect their retirement savings, even if it is not in the millions.

A rule of thumb

What is wealthy is relative to many factors. Generally speaking, if your net worth exceeds your insurance limit, you need an umbrella. Adding up your assets, minus your debts, determines your net worth. If that comes to $500,000 for instance, and your liability limit is $300,000 you should get one. In general, young people who have not built up a lot of assets, or people whose net worth is less than their insurance limits, do not need such a policy. 

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Community Management Insurance Group in Greensboro, NC is here to answer all your insurance questions and help you get the coverage you need.