Any insurance agent has a few clients who say, “My business is too small to be sued.” It’s painful for your agent to hear this! They see small businesses deal with lawsuits all day long. The truth is that business size has nothing to do with the likelihood of a lawsuit or the need for umbrella insurance.
SEE ALSO: WHAT IS UMBRELLA INSURANCE?
There’s No Such Thing as “Too Small to Be Sued”
Let us repeat that: Your business size has NOTHING to do with how likely you are to be sued - or how much it costs. The U.S. Small Business Administration has found that 36 to 53% of all businesses will be involved in a lawsuit in any given year, regardless of size.
Small business owners sometimes figure umbrella insurance isn’t necessary because they don’t have a lot of assets to cover. But the person who sues you doesn’t necessarily know or care how large your company is, or how much money you might have. Destroying your business might, sadly, be their goal.
Umbrella insurance could cover a multi-million dollar lawsuit. It could make or break your small business.
Umbrella Insurance Grows With You
Here’s another important reason why your company’s size doesn’t matter in terms of umbrella insurance: It’s designed to grow with you anyway.
Your business probably isn’t the same size it was 5 or 10 years ago. As your company has evolved, so have your insurance needs. Has your policy kept up with the changes? Umbrella policies can blunt the impact of time - especially if you don’t often get around to re-evaluating your risks.
Your company’s size shouldn’t stop you from seeking umbrella insurance. It can be the shield you need in a crisis situation. Request a free quote from Links Insurance today.