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The Clarity Blog

An Umbrella Policy Could be the Key to Saving Your Business

on Feb 27, 2015 2:38 PM

An Umbrella Policy Could be the Key to Saving Your BusinessProtection against high-dollar liabilities continues to be a critical – yet often overlooked – element of insurance coverage for jewelry businesses.

Whether a customer’s slip and fall, an employee’s automobile accident while in the course of doing business, a product defect that harms one or more customers, or another of the myriad circumstances that can lead to a high-dollar lawsuit, many jewelry businesses are unprepared for this type of risk.

According to David Sexton, CPCU, vice president of loss prevention consulting at Jewelers Mutual Insurance Company, the liability coverage limits in many business-owners policies are insufficient to protect against the full potential risk. “In today’s highly litigious society, every business should consider carrying umbrella liability coverage,” he said.

“As the size and the incidence of multimillion-dollar jury awards continue to increase, businesses without the benefit of additional umbrella liability coverage are often unable to withstand a ruling from a plaintiff-sympathetic jury. In the category of auto accidents alone — one of many liability categories covered under Jewelers Mutual’s Umbrella program — claims severity has certainly continued to grow,” Sexton explained.

“It’s a needless financial risk,” Sexton added. “In most cases, the additional umbrella protection cost represents a small fraction of a business’s total annual insurance premium, but that small additional cost translates into millions of dollars of liability protection! Without that additional protection, the business could be forced into bankruptcy by a big jury award.”

Is your business protected against the potential for high-dollar legal liabilities? Talk to your Jewelers Mutual agent about an umbrella policy today and make sure your business is covered.

RELATED: The Basics of Businessowners Insurance Coverage

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