Although lawsuits were once a measure of last resort, they're now used routinely to settle disputes. And not only are suits more frequent, they're also more expensive. Multi-million dollar awards have become commonplace. However, legislators have taken notice and are considering measures to cap awards. What can business owners do to protect themselves while legislators debate these difficult questions?

Many business owners are turning to their umbrella coverage to provide additional limits of liability beyond those already provided in their basic policies. If your current business liability coverage is for $500,000, a $2 million umbrella increases your coverage limit to a potential $2.5 million. Umbrella coverage is also available for other liability claims, such as auto. Your umbrella policy covers the excess on your basic policies. So, using the $2.5 million umbrella policy example above, if you're sued for $1 million and your umbrella pays $1 million on a claim, you'll still have $1.5 million for future claims.

Of course, umbrella policy provisions and coverages vary widely, so it's wise to consult your agent. Call us. We can provide you with a customized review of your liability needs and help you decide on the umbrella that best fits your business needs.