Under my Umbrella-ella-ella
Everyone always says “that won’t happen to my business”, but let’s face it; we aren’t as invincible as we think we are. Umbrella liability insurance provides you with an extra layer above and beyond your General Liability Policy. Most General Liability limits are $1,000,000 per occurrence and $2,000,000 aggregate. Unfortunately what once seemed like enough may not be any longer. What happens if the claim settlement is higher than your GL limit?
Travelers Insurance Company provided a few examples of real life accidents that resulted in large liability settlements.
| Settlement | Actual Accident |
| $8,700,000 | A company truck ran a red light, striking a motorcycle in the intersection |
| $3,000,000 | A defective product manufactured by an insured’s company cause a fire that claimed three lives and destroyed property |
| $1,500,000 | A customer was injured by slipping on an icy walkway causing spinal cord injuries resulting in near total paralysis. |
So how much is enough? Well no one can really say how much would be enough if you are involved in a liability lawsuit, however, if you have a Commercial Umbrella to sit over your General Liability policy you will be better protected. Even if you are found to be innocent, the cost of a lengthy lawsuit can be devastating, your General Liability and Umbrella liability would provide defense costs in the event you are pulled into a lawsuit.
Call your Trusted Choice agent today and determine if you have enough liability insurance to properly protect you if your business is sued.
