A Guide to Finding the Right Umbrella Insurance Policy in New York

As a business owner, you face risks regardless of the industry that you are working in. Accidents can happen at any time and you don’t want to be left unprotected if you are faced with a lawsuit. That’s why having an Umbrella Insurance Policy is so important. Umbrella insurance provides a safety net if something goes wrong. Here is a thorough overview of why you should consider commercial umbrella insurance.

● Commercial Umbrella Insurance Explained

Commercial umbrella insurance is a policy that offers extra protection beyond your general liability limits. If you are sued for damages that exceed the coverage on your existing liability policy, umbrella insurance adds a layer of protection to prevent you from potentially losing your business or some valuable personal assets. Umbrella insurance is normally necessary during disputes regarding a serious bodily injury, medical malpractice, or severe property damage.

● Why Is Umbrella Insurance Important in New York?

If you are a small business owner, umbrella insurance is a major asset because you likely do not have the resources to fight a serious liability dispute. Remember that you can be sued for anything at any time. New York’s recent policies make fighting litigation allegations very unpredictable. Your business could be in jeopardy if you don’t have the financial resources to pay out a large settlement. Umbrella insurance is necessary if you operate a business where you are in close contact with people, your employees have a high risk of getting injured, or if you are working under a tight budget. You want to avoid having to use your personal income to fight legal charges.

● Finding Coverage

As you start searching for an agent, make sure that they are verified through the New York Department of Insurance. The New York Department of Insurance provides a license to all of the agents in the state. The agent receives a fire and casualty license. The agent will contact you and discuss the type of policy that you need based on your industry and the business that you have. They may also look at your policy and check the exposure bases, classifications, and endorsements.

Different Benefits of an Umbrella Insurance Policy

● Commercial Property Insurance

Commercial property insurance covers your business if your property is damaged or stolen. This includes buildings that you own as well as your inventory. The liability coverage on the policy protects your business if someone gets injured on your property. If a person is visiting your business and they accidentally slip and fall and injure their arm or leg, you could be facing a potential lawsuit.
In addition to allocating the financial resources to cover the attorney fees and court costs, you are also being sued for the injured person’s lost wages. In this scenario, there is a very strong chance that your liability limits will be maxed out, which is why you need commercial umbrella insurance. Without the extra layer of protection, you could potentially be looking at over a million dollars in total charges, some of which you would have to cover using your personal income.

● Commercial Auto Insurance

Commercial auto insurance is similar to a traditional policy, only you are covering the vehicle you use for business-related purposes. Liability coverage protects your vehicle if it is involved in a collision that causes damage to someone’s property. A potentially more serious situation is if you hit someone and they suffer broken bones or worse. If their injuries are severe, you will likely be faced with court costs and medical bills that exceed the limit on your commercial auto insurance policy. Umbrella insurance can provide a safety net so that you will be protected if things get costly while you settle this situation.

● Workers’ Compensation

Workers’ compensation helps you protect your business by covering you if one of your employees suffers a work-related illness or physical injury. Keep in mind that workers’ compensation works on a no-fault basis, so the burden of proof does not fall on your employees to prove that you are at fault for their injuries for them to receive benefits. If you have employees who complete physically demanding tasks regularly, commercial umbrella insurance is a necessity. If your employees are at a high risk of getting injured on the job, chances are that you will have to deal with some type of employee-related litigation. Umbrella insurance will cover you and prevent you from suffering a loss of income, as well as your reputation from being damaged.

● Why Is Commercial Umbrella Insurance an Asset?

Commercial umbrella insurance protects you from serious losses that could potentially cause you to lose your business. Commercial umbrella insurance also helps you acquire big contracts because it shows that you have protections in place if something goes wrong. The more contracts that you land, the more in demand your business will become. It can help you manage your insurance budget wisely. The versatility of the policy is also an asset as you will be protected against claims that are not directly outlined in underlying policies.

Many New York businesses do not have enough liability coverage to properly secure their assets in the event of an emergency. For the commercial insurance to protect your business, contact the team at Northeastern Group. Serving New York and beyond, we are here for you during this challenging time.

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