February 10 is National Umbrella Day!

Topics: Small Business

When we think of umbrellas, one word comes to mind – protection. Whether it’s protection from the rain on a stormy day, or from the sun’s rays when lounging at the beach, umbrellas offer you the coverage you need. Umbrella insurance works sort of the same way – offering protection against different elements of risk.

February 10 is National Umbrella Day; in recognition of this, we take a closer examination of umbrella insurance coverage and why it is important for your small business.

Umbrella Coverage Overview


As a small business owner, you know how much an accident or litigation can cost your business. That is why you've done your due diligence and taken out insurance to help protect your business against various risks, including personal injury, property damage, and auto. Chances are, however, that your insurance policies come with liability limits. When those limits are exceeded you could find yourself footing the bill out of your own pocket. That's where umbrella insurance comes in.

What Does Umbrella Insurance Cover?

Umbrella insurance picks up where your standard insurance coverage falls short. You can think of umbrella insurance less as a standalone insurance product and more as a way of giving your existing coverage an extra boost. With umbrella insurance, you can have additional liability limits to protect your business. Umbrella insurance typically provides extra liability coverage for:
  • Bodily injury
  • Property damage
  • Other types of litigation, such as libel and slander

Increasing Liability Limits

The best reason to have umbrella insurance is because the cost of litigation is so high. Your current coverage may sound like it has a high limit, but when you find yourself on the losing end of a lawsuit, you could quickly learn how inadequate that coverage may be.

For example, say that you run a small shop and one of your customers slips and falls because the walkway leading to your entrance wasn't properly cleared of ice. Your current insurance policy covers you for injuries to third parties up to $1,000,000, which sounds like a lot of money. However, the injured customer may claim that they took a particularly hard fall and will now need hip and knee replacement surgery. In addition, their fingers were so severely injured that they can no longer earn a high level of income in their current occupation as a physical therapist. As a result, the judge in the case could rule that you need to pay the injured customer $1,500,000 in compensation. While your insurance may cover you for the first $1,000,000, you could be left to figure out how to pay for the remaining $500,000, which is a significant sum for many small business owners.

That's why umbrella insurance is so important. It provides a boost to your existing insurance coverage so that if a lawsuit goes against you and you are facing a substantial bill, you know that extra protection may be there.

How Do I Get Umbrella Insurance?

Umbrella insurance is easy to apply for. Contact AmTrust today and our representatives will assess your business and show you how umbrella insurance can offer extra coverage to help keep your business safe. When it comes to finding an umbrella insurance product for your business, AmTrust's experience building insurance solutions can help you design a product that fits.

This material is for informational purposes only. Neither AmTrust Financial Services, Inc. nor any of its subsidiaries or affiliates represents or warrants that the information contained herein is appropriate or suitable for any specific business or legal purpose. Readers seeking resolution of specific questions should consult their business and/or legal advisors. Coverages may vary by location. Contact with your local RSM for more information.
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