What a difference three little zeroes can make. A million, a billion, a trillion. Numbers that large are tossed around nightly on the news, so it’s easy to lose reference when you’re talking numbers that big. While a million dollars is hardly a measly little amount, it’s easy to reach when considering claims for a catastrophic liability loss.
Unfortunately, nearly 1 in 10 firms has suffered a liability loss of $5 million or more in just the last 5 years, according to Chubb. In fact, they say judgments and settlements exceeding $10 million are “commonplace.”
Of course, a comprehensive risk management program should always be in place to reduce or eliminate a claim in the first place. But even companies with extensive safety programs, training and other safeguards are likely to one day face a large claim. Are you fully protected? Do you have the additional protection provided by an umbrella liability or excess liability policy?
The difference between the two? Umbrella insurance can fill in coverage gaps of any primary policies, but excess liability only goes into effect when all other primary policies are totally exhausted. Fortunately, both umbrella and excess liability insurance are generally affordable options for every business. And, it’s coverage you’ll be thrilled to have should a claim settle for $1.5 million, but your general liability coverage tops out at $1 million.