Helpful Tips When Considering Florida Commercial Umbrella Insurance
Florida business owners know that insurance is a much needed expense. Normally, they will purchase the standard amount of protection needed for a disaster. The problem comes in though when that disaster is catastrophic. In these cases, sometimes the standard insurance policy isn’t enough to cover the totality of damage.
The way to protect a business is to purchase Florida commercial umbrella insurance. Umbrella liability provides coverage extends beyond the normal policy. It becomes effective when limits of a standard policy run out. Here are some things to remember when it comes to commercial umbrella insurance:
• Many umbrella provisions are negotiable. This is good news for business owners who want Florida commercial umbrella insurance but want control over what amount or the extent of coverage. You can talk with the underwriters to make sure that the insurance product you are purchasing is the right fit for your needs.
• Umbrella coverage is purchased only after the standard policy. Remember that umbrella coverage is extra, it does not substitute for normal insurance. If your normal insurance runs out, this is when the umbrella steps in to help. Make sure that your standard coverage is adequate for disasters and to protect you first; then move on to the umbrella policy. For example, let’s say your general liability policy offers you $500,000 per occurrence in coverage, or $1-million total. You could expand that limit to $2-million per occurrence and $2.5-million aggregate with a $1.5-million umbrella policy.
• Customization of umbrella policies is normal. An auto body shop has different coverage needs than a 30-story high rise office center. Insurance companies know that and allow for modification of policies to fit the purchaser’s needs. To get a custom quote though, be sure you’re ready with the financial details of the business, your current insurance policy’s declaration page, your loss history, a list of your company’s CEOs and leadership and a payroll breakdown.
• Umbrella insurance can save your assets. Let’s say a customer slips on a misplaced rug. Their injuries are considerable and your insurance coverage is quickly consumed. Their medical costs exceed the general liability of your current policy. Without umbrella coverage, you may be stuck in a difficult financial situation. If their medical costs go on for any length of time, the total could exceed anything manageable by the average business owner. They may be forced to look to other means of paying. Umbrella coverage protects you from that.
Overall having Florida commercial umbrella insurance is highly recommended. Just think of the number of issues that can arise in which you need to maximize your coverage for protection. If your current limits run out, without umbrella insurance, you may have a serious financial issue to manage.