Last month many of us watched the devastation caused by an explosion at a fertilizer plant in West, Texas. The company that owned the plant, West Texas Fertilizer, had a general liability policy with $1,000,000 limit for any one claim and an Umbrella policy that gave them another $1,000,000 in coverage. It will simply not be enough to pay for the damages caused by the explosion.
This is an extreme example, but it raises a few questions that you, as a business owner, should consider and discuss with your agent. Should I have an Umbrella policy? What limit should I have?
In today’s climate of let’s sue and ask questions later, every business should have an umbrella policy with at least $1,000,000 in limits. Without it, the risk of losing your business because of an auto accident or injury to a customer from your business activity is too great.
To understand what limit is right takes thought and consideration of a number of factors. Here are just a few examples:
- What is the nature of your product or service and what injuries or damage could they cause?
- How many and what size vehicles does your business operate?
- What are the value of the assets and revenue of your company and are your personal assets at risk based on the type of business entity?
- How likely is it that you will face a law suit? In the Philadelphia area the answer is, unfortunately, very likely.
Contact Doug Cook, VP of Commercial Insurance, with your questions. 610-489-6911 X 8 or [email protected].
We are a Trusted Choice independent insurance agency in Collegeville, PA providing auto, home, business, life, health and group insurance in PA, DE, MD and NJ.