Running a business comes with endless parts to manage—from employees and customers to equipment and contracts. Understanding how to protect your business is imperative, whether you’ve invested in a retail store, office space, or you’re managing a warehouse. If you’re thinking of adding umbrella insurance to existing commercial coverage, Miao Insurance Services, serving Pleasanton, CA, can help you determine if you’re on the right track.

Is Umbrella Insurance Required by Law?

No. Umbrella insurance for business owners is not required by law. However, it is strongly recommended to consider an umbrella policy when investing in or growing an existing venture.

Benefits of Umbrella Insurance

Umbrella insurance provides financial security once a traditional commercial policy has exceeded its limits of protection. When a traditional insurance policy is at its limits, you can be held personally liable for additional costs. An umbrella insurance policy usually adds between $1 and $5 million in additional coverage. In some cases, policies can protect even more, depending on your needs.

Umbrella insurance also provides extended liability protection, including covering certain incidents that may not be covered with your traditional insurance policy. This can be valuable for businesses that store and utilize consumer data, have heavy foot traffic, or even operations involving vehicles, delivery fleets, and large equipment. An umbrella insurance policy is always recommended for businesses throughout California. 

While umbrella insurance isn’t required by law in Pleasanton, CA, it is one of the most invaluable investments you can make when considering insurance policies that offer maximum protection as a business owner. If you’re new to owning a business or in the process of expanding operations, working with the right insurance agency can make all the difference. To learn more about how umbrella insurance can protect your investment, contact Miao Insurance Services today.