No business owner would dispute the fact that liability coverage should not be included in the overall package for business insurance in St. Augustine. What is open to conjecture is how much coverage is enough. The only way to know for sure is to take a good look at the nature of the business, the types of risks that are inherent with the industry, and what resources could be brought to bear if the business is sued.
The Level of Risk
Business owners assume some risk simply by opening companies. While it’s possible to go for decades and never encounter so much as a threat of legal action, all it takes is one round to put the company in danger.
Some owners feel that, if they stockpile cash and other tangible assets, they can protect the core business even if a lawsuit is awarded in the favor of the plaintiff. The risk is that the award may be more than those assets can cover. What happens to the business then?
Using data related to the industry that the company is associated with, get an idea of what sorts of judgments are awarded under certain circumstances. Take the worst-case scenario and apply it to the business. Whatever figure arises for that scenario, seriously consider securing liability coverage equal to that amount.
Going Beyond Liability
It’s important to understand that liability coverage is only one component of a comprehensive plan for business insurance in St. Augustine. Owing to limits on that type of coverage, it pays to invest in what is known as an umbrella policy. When it comes to protecting the company, provisions within that wider plan will provide protection that’s above and beyond the maximum figure offered by the liability coverage. With this type of plan in place, the odds for the company closing its doors due to legal action and a resulting judgment against the company are much lower.
Now is the right time to take a second look at the amount of business insurance in St. Augustine currently in place. Doing so could be the most beneficial thing the business owner does today in terms of protecting the company.
