Each year Bill Dougherty teaches business owners how to Avoid the 10 Critical Business Insurance Mistakes.  He motivates them to “take charge of their insurance program” to Reduce Costs and Maximize Value.

Chapter 8: Inadequate Umbrella Limits

Each month we continue to build a game plan to help you improve the quality and cost of your insurance program.

To date we have provided you with the first seven steps of the program:

  1. Partnering with the “Right” agency
  2. Paying attention to the Carrier’s Financial Performance
  3. Reviewing Coverages with your Agent
  4. Having a Claims Management Plan
  5. Working with only One Agent
  6. Implementing a Risk Control/Loss Prevention Plan
  7. Managing your Workers Compensation Program

This month’s installment #8 is a “quick hit” mistake to avoid… “Inadequate Umbrella Limits”.

We all know that a commercial umbrella provides protection against catastrophic loss. Everyone should purchase this necessary coverage!

The limit of your umbrella policy is usually driven by your contracts and exposures.

If you require or consider limits above $1 million, keep in mind that the cost of increased limits decreases as each additional million is rated. In other words, the second or third million dollars of coverage is less expensive than the first.

Also, be sure your umbrella is a true umbrella and not just an “excess” policy. A true umbrella will fill coverage gaps that an excess policy will not.

One final thought, in today’s litigious society, you should protect your personal assets by purchasing a personal umbrella policy.

It’s an inexpensive way to protect the fruits of your labor.

This is only an “Executive Summary” of a two hour seminar on this subject.

If you have any questions or need additional information just give me a call.

Next month: Mistake #9 “The Failure to Tune Up your Insurance Program”

Stay Tuned,

Bill Dougherty, EVP
True & Associates