Every small business owner and high-net-worth person dreads the moment when they get served with a liability lawsuit, especially when the suit alleges wrongdoing and the amount demanded for damages is shockingly large.
Maybe it is a frivolous lawsuit, without merit, and your lawyers can get it dismissed. Maybe it is more serious and your liability exposure is significant. The amount demanded might be more than the policy limit for your general liability insurance.
Umbrella Insurance Provides Extra Protection
While it may feel like a legal storm has overtaken you, umbrella insurance adds extra amounts to existing policy limits for a covered peril. A covered peril means something your insurance is supposed to cover as a claim.
Hot Tip: Ask your agent at The Merhar Agency LLC in Willoughby, OH, to explain your coverage and protection in detail, BEFORE you get sued. If you own a small business, you can almost count on being sued at some point.
A Lawsuit vs.a Claim
A lawsuit requires that you (and your attorneys) defend against it in a court that has jurisdiction over the matter. A claim is a demand that does not necessarily require a lawsuit to settle on an amount.
Most of the time, it is prudent to try to settle a case out of court and for your insurance company to pay a valid claim at an amount agreed by the parties to be fair. Your insurance company’s claim adjusters and legal team will handle these issues and try to negotiate the claim to lower the payout.
You will certainly feel more confident if you have umbrella insurance in place to protect your business and assets.
Talk to your agent at The Merhar Agency LLC in Willoughby, OH, about umbrella insurance.
