How to Know if I Need Umbrella Insurance in New York

If you are a Selden or Mastic business owner, it can pay to look into umbrella insurance. In New York, lawsuits can be costly, and it only takes the action of one litigious individual to jeopardize the financial health of your business. Learning about the features of an umbrella policy is the first step in determining whether this form of coverage is right for you.

What is Umbrella Insurance?

Umbrella insurance is a form of liability insurance that protects the policyholder from a lawsuit. Umbrella coverage can be extended to cover the liabilities of other designated individuals on the plan. Small businesses often purchase this form of insurance to protect their businesses from lawsuits resulting from an accident.

The Benefits of Umbrella insurance

If you conduct business in your home or use your vehicle for business purposes, you stand to benefit the most from an umbrella policy. If an employee or business partner causes an accident while driving your car or a client is injured after visiting your home office, you could be held accountable in court. However, a typical umbrella policy will offer you between $1 million and $10 million in protection. The premiums for an umbrella policy range between $200 and $600 per year, making umbrella insurance one of the best values for business owners.

The Drawbacks of Umbrella Insurance

While umbrella insurance is usually indispensable, trouble arises when policyholders purchase a plan that is inappropriate for their needs. Low-risk businesses that purchase too much insurance are at risk of wasting money. However, it is more likely that policyholders will skimp on coverage, leaving dangerous holes in their policy. Because of the complexity of assessing risk, expert advice is vital to selecting an appropriate plan.

How an Independent Agent Can Help

Our independent agents can help you assess your needs before you select an umbrella insurance policy. We offer several plans for comparison to help you find the right amount of coverage for your business at the best value.