As a business owner with a business owner’s policy (BOP), you probably recognize the importance of adequate insurance coverage. However, it is a good idea to assess the general liability portion of that policy and consider whether the basic coverage is adequate. The general liability portion of a BOP has limitations, which may not always be sufficient for your needs.
Look at your risk factors and be realistic about the possibility for damage claims to be lodged against you. Your business may be responsible for payments above the policy limitations if a claim was lost and damages awarded. Purchasing an additional rider in the form of an umbrella policy may allow the additional amount payable to be covered. Since damage payments awarded in California are very hard to predict, this umbrella coverage could be a worthwhile addition to your portfolio. Losing a claim for damages might be bad enough, but finding you may still be out of pocket can be doubly stressful.
You may think that your current BOP policy is adequate for your circumstances now, but be sure to reassess your needs on a regular basis. Your insurance agent is a great source of information should you have any questions about the suitability of your package, and can suggest changes as needed.