Celina, TX business owners aren’t legally obligated to purchase umbrella insurance. However, there are several reasons why having such a policy is a good idea.

What is Umbrella Insurance?

Umbrella insurance offers extra compensation if you reach the limits of your business liability or commercial auto insurance policy. For instance, if your commercial auto insurance policy covers up to $50,000 in property damage, but one of your employees causes $100,000 in property damage, your umbrella insurance policy will cover the additional $50,000. If you’re sued for $3 million and your business liability policy covers up to $2 million, umbrella insurance will cover the extra expense for a judgment or settlement. Umbrella insurance can also cover additional medical bills if need be.

Most businesses can benefit from umbrella coverage. Even so, some companies need it more than others. Purchasing umbrella insurance is wise if you work in a dangerous industry such as construction. Stores that get a lot of foot traffic can benefit from an umbrella insurance policy, as can retailers that sell expensive items such as jewelry or antiques. Companies that offer legal, financial, and health services can also benefit greatly from the security an umbrella policy offers.

Get Help from Rasor Insurance Today

Rasor Insurance offers multiple commercial insurance policies to Celina, TX, business owners. Our knowledgeable staff members can offer personalized advice to help you pick an umbrella insurance policy that meets your current and long-term needs. Contact us at your convenience to find out more about our policy options or to get an insurance policy quote for your business.