• A driver has a medical emergency causing him to veer into oncoming traffic, inadvertently killing three people in the resulting accident
• A nurse provides a patient with a fatal dose of the wrong medication
• Someone brings a weapon into your facility and harms your customers or employees
Companies face countless situations with the potential for liability. If you are sued, damages for the major of potential claims would fall within your primary liability policy limits. But every once in a while, severe claims hit with damages that exceed your liability policy limits. Umbrella policies prepare you for these unique circumstances by providing an extra layer of liability insurance.
If a court awards damages in excess of your primary insurance and you do not have an extra layer of umbrella protection, your organization could be held responsible for the remaining amount due – placing your assets and future earnings at risk.
Why should your organization consider an umbrella?
It used to be that regular liability insurance was enough. Then society became more litigious, new laws were introduced and legal costs continued to rise. The cumulative effect of these changes: skyrocketing liability damages! Unfortunately social services and nonprofit organizations are not immune. Legal claims against nonprofits have increased greatly over the past decade, ranging from tort liability, wrongful employment practices, personal injury, breach of fiduciary liability and more. With this increased risk comes the need for higher insurance limits and that’s why an umbrella policy is essential. An umbrella provides an extra layer of protection beyond the limits of your standard liability insurance.