For decades, a $1 million General Liability Insurance limit has been considered the standard level of protection for many small businesses. While that level of coverage is still common, today's legal environment has changed significantly.
Lawsuit settlements, medical expenses, legal fees, and jury awards have all increased dramatically, leaving many small business owners wondering whether their current liability limits would even be enough.
If you own a restaurant, retail store, café, hotel, or other hospitality business, it's worth taking a closer look at whether your insurance limits still match today's risks. In our latest Aegis blog post, we look at why your business may need to consider raising liability limits, and how the right coverage can protect the business you’ve worked so hard to build.
Even relatively straightforward liability claims can become expensive. Medical costs continue to rise, and legal defense expenses can quickly add up, even if your business is ultimately found not responsible.
Today's claims typically involve:
A claim that might have settled for much less a decade ago may now require significantly higher costs and much more time and energy than you have to give. The right kind of liability coverage can ensure your business survives a liability claim without accumulating catastrophic debts.
Businesses that regularly interact with the general public usually have more opportunities for accidents to occur. The greater the customer number, the more likely your business is to face some sort of liability claim over time.
Restaurants, bars, and retailers may face risks involving:
Even businesses with excellent safety records cannot eliminate every potential accident. Your business is only fully protected with insurance coverage that protects against a wide range of risks.
One of the most cost-effective ways to increase liability protection is through Commercial Umbrella Insurance.
An umbrella policy provides additional liability limits above qualifying underlying policies, such as General Liability, Commercial Auto, and Professional Liability, after those policy limits have been exhausted by a covered claim.
For many businesses, increasing protection from $1 million to $2 million, $3 million, or even $5 million may cost less than expected. The additional coverage can provide valuable peace of mind if your business faces a large lawsuit.
Many businesses purchase liability limits when they first open and never revisit them. However, your exposure often changes as your business grows.
Consider reviewing your limits if you have:
An annual insurance review is an excellent opportunity to evaluate whether your liability protection still reflects the size and scope of your business.
No business owner expects to face a major lawsuit, but the financial consequences can be devastating if your insurance limits fall short. Reviewing your Business Insurance coverage today can help ensure your business is better prepared for the risks of tomorrow.
Contact Aegis Insurance & Financial Services at 713-850-7622 for more information or to schedule a consultation with our Commercial Insurance agents.
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