Some people who have purchased personal umbrella insurance to protect their assets if something happens in their Woodbury, MN, home believe that this protection will also extend to their business. However, nothing could be further from the truth. Kriener Insurance can help you secure a second policy to protect your business.
Strict Separation Between Personal and Business Liability
One of the hardest and fastest rules in the insurance industry is the separation of personal and business liability. A personal umbrella policy is designed to specifically float over your personal insurance for auto, home, etc. When an incident involves a business activity, commercial entity or an asset owned by an LLC or corporation, your personal umbrella policy will trigger its business pursuits exclusion and deny the claim.
Business activities carry a completely different risk profile. Read your personal policy. When you do, you will find a section explaining how it excludes coverage for bodily injury or property damage arising out of any business pursuits of the insured.
Scenarios Where People "Get Caught"
Business owners and freelancers frequently believe that their personal policies will protect incidents that occur if they have a home office. Common grey areas include:
- A home office slip-and-fall
- A freelance cyber leak exposing sensitive data or resulting in financial loss for clients
- Rental properties owned under your personal name
While some carriers may allow you to cover your rental properties under certain circumstances, a personal umbrella policy will not cover the first two.
To adequately cover your business, build a group of insurance policies that match your personal lines. General and professional liability, plus commercial umbrella insurance, will typically cover your company.
Let Kriener Insurance help you find the right commercial umbrella insurance policy for your needs. Contact the agents in our Woodbury, MN, office to learn more.
