Small business owners often cringe at the thought of paying for even more insurance with the mistaken belief they are fully covered or have "enough" insurance. Unfortunately, small business owners might be even more at risk than most people and could benefit by obtaining one of the most affordable insurance policies available: umbrella insurance.
Umbrella insurance kicks in once other insurance coverage is exhausted. It can make the difference between solvency and bankruptcy for only a few hundred dollars a year. Even if your company is in an LLC you may still benefit from an umbrella insurance policy. Remember, an LLC stands for Limited Liability – not zero liability! Umbrella insurance provides additional asset protection for your personal property or secondary income sources.
For example, if you are a physician who owns investment real estate on the side, an umbrella policy may provide much-needed additional coverage for the real estate which could put you at a higher risk than normal of being sued. Don't make the mistake of lumping all of your business, investment and other assets into one basket. Instead, make a list of each individually operating asset and then the combined assets before calling GEICO for an umbrella insurance quote. Be prepared to explain your personal and professional affiliations, investments and side income sources to find out what type and amount of personal umbrella insurance best suits your needs.