How Much Liability Coverage Do I Need?
How Can I Add Enough Liability Insurance For My Business?
It is one of the most common questions we receive: How much liability coverage do I need? The most accurate answer is $1 more than all of your liability claims. However being that there is no way to know this amount ahead of time, it becomes a combination of your risk appetite and how much coverage you can reasonably afford.
How Large is my Liability Exposure?
We all see stories in the news almost daily about tragic accidents, products causing injuries, and huge lawsuits against businesses however there is still a tendency to underestimate the worst case scenario when it comes to our own liability exposures. Obviously risks vary greatly depending on industries, products, company size, location, customer territory, etc. so a personalized assessment is very important in this process. However, even a single employee office will have someone driving on behalf of the business at some point which has the potential to cause a tragic accident with multiple fatalities and multimillion dollar lawsuits against your business.
Umbrella and Excess Liability Policy Solutions.
Umbrella and Excess Liability policies offer the ability to add a tremendous amount of liability coverage to your insurance program at a very reasonable rate. The general intent of these policies is to provide additional liability coverage after your underlying policies are used up. In some cases these policies may even provide broader or narrower coverage as the forms are not standardized so it is important to take the time to make sure you know exactly what you are buying.
Check on Increasing Your Limit.
For most carriers, the price per million dollars of coverage decreases as the total limit increases. This is because the likelihood of a $2 million claim is more likely than a $20 million claim and much more likely than a $200 million claim. Also, large limits are often structured in towers through different carriers which then enables additional pricing benefits. Consult with your insurance partner on increasing your limit as you may be surprised at how much more coverage you can get for a little more premium.