All business owners must have a BOP policy, a business insurance package that includes several policies to get their business protected. It’s the best way to protect your assets, work tools, facilities, company cars, workers and any lawsuits.
The objective of POB is to cover the potential risks that your company could suffer. But what if something goes wrong and the contracted insurance doesn’t cover it or the cost of compensation exceeds the limits covered by the policy?
Such a situation can put the business at risk and lead to bankruptcy. To avoid this, umbrella civil liability insurance was devised, a policy that covers you when the contracted insurance lapses.
Imagine the liability policy is for $100,000. But a truck from his company, trying to maneuver onto a customer’s property, collides with the garage, falls into the pool, and causes $200,000 worth of damage. It’s in situations like this where your umbrella policy comes into play to get you out of trouble.
The umbrella policy is activated, always after the coverage limits contracted in your commercial insurance have been exhausted. It is important before signing that the insurance specialist takes into account the limits of the BOP protections in deciding where, how and for how much to extend the cover.
