A business may need umbrella insurance when it has significant liability exposure that exceeds the limits of its existing insurance policies. Umbrella insurance is a type of liability insurance that provides additional coverage above and beyond the limits of a business’s other insurance policies, such as general liability insurance and auto insurance.
Umbrella insurance is typically needed when a business has a high risk of being sued or held liable for a large amount of money.
For example, if a business has a lot of customer or client interactions, or if it operates in a high-risk industry, it may be more likely to face claims that could exceed the limits of its other insurance policies. In these cases, umbrella insurance can provide additional protection and help the business manage its financial risks.
Overall, a business may need umbrella insurance when it has significant liability exposure that exceeds the limits of its existing insurance policies, or when it wants additional protection against claims that may not be covered by its other insurance policies. It is important for businesses to carefully assess their risks and consult with an insurance professional to determine whether umbrella insurance is right for their needs.
