Umbrella insurance: what is it for? All business owners need to have a BOP policy, a business insurance package that includes different policies to achieve the protection of their business. It is the best way to protect your assets, work instruments, facilities, company cars, workers, and possible lawsuits.
The objective of POB is to cover the potential risks that your company may suffer. But what happens if something goes wrong and the contracted insurance does not cover it or the cost of compensation exceeds the limits covered by the policy?
Such a situation can put the business at risk and lead to bankruptcy. To avoid this, the civil liability umbrella insurance was devised, a policy that covers when the contracted insurance falls short.
Imagine the liability policy is for $100,000. But a truck from his company, trying to maneuver on a client’s property, collides with the garage, falls into the pool, and causes damage valued at $200,000. It is in similar situations when your umbrella policy kicks in to get you out of trouble.
The umbrella policy is activated, always after the coverage limits contracted in your commercial insurance have been exhausted. Before signing, it is important that the insurance specialist takes into account the limits of the BOP protections to decide where, how, and for how much to extend the coverage. Umbrella insurance: what is it for?
Umbrella insurance: what is it for?
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