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How would your life be different right now if you, as a business owner, were facing a significant lawsuit and your insurance limits were exhausted

Susan is a business entrepreneur that has dreamed her entire life about having her own coffee and brunch spot.

After saving little by little for years, she finally opens The Cozy Cafe. The restaurant is a success and recently celebrated its second anniversary. Susan continues to invest all her time and money into making sure her business will thrive.

One day, Susan receives a terrible call in the middle of the night; The Cozy Cafe is on fire! She arrives minutes later to witness her beloved restaurant engulfed in flames. Her refrigerator had caused the sudden electrical fire, and the overhead sprinklers that were supposed to kick in never activated. On top of that, the hardware store next door also faces significant damage, as a display of paint buckets quickly multiplied the damage before the fire department was able to extinguish the fire. In minutes, Susan’s dream has been burned away to nothing.

After enduring a stressful 11-month legal battle, Susan now faces a $3 million settlement for the extensive damage that occurred to the neighboring hardware store, as well as the sky high legal attorney fees incurred.

Everything that Susan had worked years to achieve is suddenly gone. Susan has many sleepless nights ahead as she wonders how she will pay off the settlement in the years to come.


Susan’s situation is very unfortunate, but an unexpected lawsuit can easily occur to any business owner.

The Numbers:

  • The Top 5 Costliest Types of Business Claims Include:¹
    1. Reputational Harm (loss of profit resulting from damages to a firm’s reputation); 2. Vehicle Accident; 3. Fire; 4. Product Liability; 5. Customer Injury or Damage
  • The Top 5 Most Common Types of Business Liability Claims Include:
    1. Fire; 2. Customer Slip and Fall; 3. Customer Injury and Damage; 4. Product Liability; 5. Struck by Object

  • How would your life be different right now if you were facing a significant lawsuit and your commercial liability insurance limits were exhausted?

  • What would you be giving up if you needed to pay off a large, multi-million dollar legal settlement?
    Business assets and even future revenue will be on the line, putting yourself, your business, and your employees at risk.

  • If you were given an opportunity to secure the future of your business right now, would you do it?

Commercial Umbrella Insurance provides an additional layer of insurance, and goes into effect after the liability limits of your other commercial policies are exhausted.

We highlighted the aftermath of a commercial fire in our example, but it can be applied in a variety of situations. A commercial umbrella is a form of liability insurance and offers additional coverage for claims (i.e slip and fall injuries; lawsuits involving car accidents, workers’ compensation, third-party property damage).