At Great Michigan Insurance, we suggest umbrella insurance to all our Marshall, MI business clients. Not enough of them take us up on that offer and end up going out of business. Thankfully, an umbrella insurance policy can minimize this risk and keep you making good money.
How Lawsuits Drive Companies Out of Business
When your company suffers from a lawsuit, there are a few things that could drive you out of business. Let’s take a look at a potentially real situation to give you an idea of what could happen:
- You get sued for $100,000 and lose
- Your liability coverage maxes out at $50,000
- You pay for the rest of the cost
- Your company struggles to pay bills
- Your employees start abandoning you
- Your business shuts down
This situation is all too common with companies that don’t take the time to get an umbrella insurance policy. This surprisingly fairly priced option is fairly simple to understand with minimal challenge.
How Umbrella Policies May Help
Umbrella insurance policies kick in when your normal liability is paid out. It typically works well for businesses with a high risk of lawsuits or those with a high capital range. For example, in the situation above, most umbrella policies would easily pay the $50,000 you needed to cover your lawsuit.
In this situation, everyone is happy. The person suing you or who needs money due to your company’s mistakes is paid, and you can stay in business. That makes it essential to talk to your insurance company right away to learn more about your options.
Let Us Help You
As you can see, getting the high-quality insurance that you need is critical for your business’s continued operation. Please don’t hesitate to reach out to us at Great Michigan Insurance to learn more. Our team can set your Marshall, MI company up with the policies that it needs to stay operational.