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How Much is Enough?

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When it comes to business liability limits, the only accurate answer may be, “How much are you going to get sued for?” Despite countless hours spent by agents, lawyers, accountants and others trying to determine an accurate, quantitative method for answering this question, such efforts turn out to be little more than an exercise in futility.

As a result, the common displeasure expressed by business owners to agents providing commercial liability insurance is, “No one seems to know how much I need.” No doubt part of the frustration exists because determining liability needs is not as straightforward as determining the value of a piece of property – building, equipment, vehicle, etc. – for property coverage.

In the absence of the ability to predict future litigation or jury award sentiment, one excellent tool for businesses is an excess liability policy (sometimes referred to as an “umbrella”). An excess liability policy can provide additional protection in the millions of dollars for a relatively low premium. Until – if ever – a definitive answer can be determined for the question of how much liability coverage is needed, an excess liability policy continues to be a business owner’s best bet. For more information, contact your insurance advisor today.

©2013 Selective Ins. Group, Inc. (Branchville, NJ). "Selective" insurers include Selective Ins. Co. of America, Selective Ins. Co. of New England, Selective Ins. Co. of N.Y., Selective Ins. Co. of South Carolina, Selective Ins. Co. of the Southeast, Selective Way Ins. Co., Selective Cas. Ins. Co, Selective Fire and Cas. Ins. Co and Selective Auto Ins. Co. of N.J. Insurers and products available vary by jurisdiction.