General Liability Insurance is something that every business should have to protect against claims when things go wrong. Every company faces liability risks, from accidents resulting in injuries to mistakes that your employees might make. You must understand the right business insurance solutions to protect against those liability exposures. A few solutions exist, but general umbrella coverage is often a wise investment. Your company should evaluate those risk factors and ensure you have the best and adequate coverage to protect against potential losses.

Understanding Liability Umbrella Business Insurance

A liability umbrella policy covers losses associated with claims of physical injuries or damage to property. These claims may originate from customers, clients, or suppliers. In many cases, these policies save a business from complete bankruptcy due to the substantial settlement awards that often result in these types of claims.

What Does General Liability Insurance Cover?

Before you can justify the investment in a liability umbrella policy, you should understand the types of coverage it may offer your business.

• Injury coverage for anyone who slips and falls on your business property or suffers an injury due to your services.
• Property damage coverage for any damage your company may cause to a customer’s property, as can occur for landscaping services or even when delivering a product to a customer.
• Slander and libel protection for accidental harmful statements, including those about a competitor or another business.
• Intellectual property theft costs for claims that your company stole copyrighted material or used licensed material without authorization. These claims frequently occur with music in advertising, for example.

These are just a few protections offered by the right umbrella liability policy.

What To Know About Liability Insurance Exclusions

As with any other type of insurance, liability coverage also has limitations. Familiarize yourself with the restrictions of any business insurance policy you invest in to understand what is not covered.

For example, most liability coverage excludes the damages resulting from criminal and intentional actions. Professional errors, such as service mistakes and breach of contract, fall under errors & omissions policies instead, as umbrella liability typically excludes them. Liability coverage does not apply to theft or damage of your company’s property. 

How Much Liability Business Insurance Do You Need

When you understand how this liability umbrella can help your company, the next thing to consider is how much coverage you need from the policy. Every liability policy has a benefit limit that defines the maximum payout amount for any loss. Consider your company’s risk levels, exposure, and the maximum potential loss for a significant liability incident. Companies in high-value and high-risk industries need more coverage. You can choose policies in million-dollar increments to protect your investment.

Choosing liability umbrella coverage for your business gives you peace of mind in the face of potential economic uncertainty. With this litigious society, the more you do to protect your company, the better. The right business insurance package, including umbrella liability, can make a difference in your company’s ability to weather these challenges in the future.

About Haughn & Associates

Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.