What is Commercial Umbrella Insurance?
All insurance policies have limits, a maximum amount they will pay out for a specified event. While these limits are designed with common situations in mind, they are not a guarantee that your business will not have to pay beyond this amount. If you are found responsible for $3 million worth of damages, such as in a wrongful death lawsuit, and your general liability policy limit is $1 million, you could be responsible for the other $2 million out of pocket. These costs would cripple most Vermont businesses. Commercial umbrella insurance is a secondary form of insurance, increasing your limits and broadening your coverage beyond your existing liability policies.
Vermont Businesses at Risk
Every business in Vermont is at risk for being sued. Whether you provide a professional service or manufacture a product, if you make an error that harms a customer, they could sue you for their damages. Everything from a parking lot slip-and-fall to a product that causes death could find you in court defending yourself.
The costs of a lawsuit are extremely high, with defense costs, court fees, and other expenses. Even if you are found not liable and are not made to pay damages, your business will still be harmed financially. In certain circumstances, as a business owner your personal finances could also be at stake.