Umbrella and Excess Liability Insurance
for Architects, Engineers, & Design Professionals
Does your current business insurance plan offer enough coverage for you architecture, engineering, or design business? Let's say one of your contracts requires you to cover $2 million in your General Liability coverage, but your existing policy has a limit of $1 million. You might think that adding the extra million dollars in coverage will cost you a fortune, but it may be more economical than you think.
For as little as a few hundred dollars a year, most architecture, engineering, and design firms can get the extra coverage they need with an Umbrella (also called Excess Liability) Insurance policy.
Read on to learn whether or not Umbrella and Excess Liability coverage is a good idea for your business.
Let Your Umbrella Insurance Protect Your Business
Architects, Engineers, & Design Professionals: Let Your Umbrella Insurance Protect Your Business
As a business owner with Umbrella coverage, you are protected in the event that a claim exceeds the limits of your current business insurance plan. Here's how it works: Let's say you currently hold a Property Insurance policy that protects you up to $500,000. If a tornado tears through your town, causing $600,000 in property damage to your business, your Umbrella coverage would kick in and make up the difference.
A business without Umbrella coverage would be responsible for paying the extra $100,000 out of pocket. For many startups and small businesses, that kind of up-front money just isn't there.
But maybe you don't run your business in "Tornado Alley." For many business owners, an Umbrella policy might seem unnecessary. But take a look at some of the factors that leave businesses like yours vulnerable to devastating losses:
- A reliance on equipment / real estate. Specialty equipment and real estate can be very expensive to replace in the event of an accident. Most architectural, engineering, and design firms rely on one or both.
- Working with many people. From clients to subcontractors to employees, your business needs lots of different people to get the job done, each one increasing your risk of a lawsuit.
- Wealthy customers. Umbrella Insurance is especially important if your firm conducts business with wealthy individuals and entities. Wealthy people stand to gain more from a lawsuit against your business than a less wealthy person would. Why? Think of it this way: a wealthy person who's unable to work because of an accident or who loses income because of a mistake you made stands to lose a lot more money than a person with a moderate income.
Umbrella Insurance is often the most economical way to increase the coverage most of your business insurance plans — that's right, one policy boosts the coverage of many individual plans, often for a surprisingly low monthly premium. If you wanted more coverage without an Umbrella policy, you would have to increase the coverage of each individual plan, which would cost a lot more.
Key Details About Umbrella Insurance
Architects, Engineers, & Design Professionals: Key Details About Umbrella Insurance
Before you decide if Umbrella and Excess Liability coverage is right for your architecture, engineering, or design firm, keep in mind that Umbrella Insurance…
- Does not boost everything. For example, Umbrella Insurance cannot add coverage to your Errors and Omissions policy.
- Is sold in $1 million increments. This might sound like a lot of extra coverage, but remember that these policies come with surprisingly low monthly premiums.
- Can be added to your Auto Coverage. Many business owners add Umbrella Insurance to their Hired and Non-Owned Auto Insurance Policies. Especially if your company owns and operates vehicles, ask an insureon agent if this option is right for you.
For just a few hundred dollars each year, you can add thousands of dollars' worth of protection to your business insurance plan, not to mention your peace of mind. Invest in Umbrella Insurance, and put your business's future back in your hands.
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