Running a business can often be a risky enterprise. Most business ventures come with so many risks that must be considered, and insurance is the only viable solution for the exposures you will encounter throughout the life of your company. Exposures for liability and other types of damage can be extremely harmful, and in some cases, can have a devastating effect from which a lot of companies may find it difficult to recover from.
Imagine having to deal with a single damaging lawsuit; this could easily result in a major settlement that could cause the financial demise of your business. Plus owners could end up suffering personal financial losses as well. This is the main reason why commercial umbrella coverage from Get Preferred Insurance makes so much sense. It can protect your organization when a negative event occurs that threatens your livelihood.
Main reasons why businesses fail
Without proper insurance in place, a company has little chance of surviving. If your actions, or that of an employee results in major damage to, or destruction of, a client’s property and you become embroiled in a significant lawsuit, just the cost to defend yourself can be quite costly. This situation can bring about great stress and anxiety to managers and directors, and might possibly be the beginning of the end of the business.
Umbrella policies were created to provide additional coverage when a lawsuit is brought against a company or individual over injuries and/or property damage, and the settlement amount exceeds the liability limits on any current insurance policy. For example, if a plaintiff sues over an incident involving a product they purchased that causes injury or damages, a lawsuit of this type could easily exhaust any standard policy limits currently in place.
Injuries can result in multi-million dollar judgments
Because of their line of work and the expertise involved, a doctor or a professional ball player sustaining a severe injury would obviously have a devastating effect. Your company could find that lost wages, medical bills, and pain and suffering could cost millions in recovery fees. If the injured party cannot work for several years, a commercial umbrella insurance policy from Get Preferred Insurance with limits that match any extremely high settlement amount would be your saving grace.