Umbrella Insurance Arkansas

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Umbrella Insurance Arkansas Policy Information

AR Umbrella Insurance

Umbrella Insurance Arkansas. Does you business need an umbrella excess liability policy? Any company in business in today's modern world is subject to claims of wrongdoing and/or negligence. With an AR umbrella insurance policy in place, the fallout from these types of lawsuit is minimized and mitigated.

In the litigious environment in which we live, people are seemingly looking for a reason to sue a company, business, or individual and the excess liability policy can cover damages that exceed the limits of your underlying liability insurances.

Umbrella insurance Arkansas is excess liability that protects your business from lawsuits with rates as low as $57/mo. Get a fast quote and your certificate of insurance now.

Any Company Can Be Sued for Negligence or Wrongdoing

Now more than any time in history, people are more than glad to lodge a complaint against a business, even if the complaint has little or even no merit. When an individual feels wronged or jilted in some way, the first thing that comes to mind is to make the company offending them pay. Many people see a business as having deep pockets, even if the business is small and doesn't have a lot of revenue. With business umbrella insurance Arkansas, your business edeoys a heightened level of protection from such claims, and should your business find itself paying an exorbitant amount in a claim, this insurance can be invaluable.

A commercial agent working with experiencing writing business policies is a go-to source for getting the right umbrella insurance Arkansas policy. An agent with experience can be helpful in recognizing the risks that your business faces and helping you to find the right level of protection to put a shield between you and potential litigants.

Reasons to Buy Business Umbrella Insurance

There are a number of reasons that an umbrella insurance Arkansas policy may be right for you. Some of them include:

  • You have professional liability coverage in force, but it might not be sufficient to cover your needs, including any payouts to litigants and the legal fees incurred to defend yourself in court.
  • Your business has significant assets to protect. Remember that if a monetary award is quite significant, you may be asked to sell off assets to cover any award not met by your insurance.
  • Your company runs a high risk of claims because of the service or products that you provide or sell. For example, a dog walking business is generally a less-risky endeavor than a sky-diving instruction business.
  • The work you do is prone to litigiousness. Some professions see more litigation than others; a doctor is more apt to be sued than a guy providing landscaping services.

Commercial Umbrella Insurance and Your Business

Lawsuits in the business world are filed each and every day. Do you know your own business' risks?

Big businesses are not alone in their risk for legal action against them. Small businesses and mid-sized enterprises are also vulnerable, perhaps even more so. Any business of any size can be targeted, and even a minor lawsuit can cost a lot of money to dispose of, including legal fees for representing claims without merit.

Some scenarios that often leave businesses at risk of being sued include:

  • An employee posting something deemed damaging about another business or individual on a social media network from a company computer.
  • Advice rendered by an employee causes a client to lose money.
  • A customer coming into the office for a consult slips in ice on the pavement out front and is inured.
  • A bartender serves too many beers to someone who ends up in an accident and kills someone.
  • A waitress drops a hot cup of coffee on a customer and causes a burn.
  • An adjustment by a chiropractic professional leads to the patient's injury.
  • A product you sell causes people to become ill or die.
  • An employee in a company car runs a red light and causes an accident.

These are real world examples of accidents that have occurred and been adjudicated in a court of law. It is impossible to know in advance if an event will occur, which is why an umbrella insurance Arkansas policy makes sense. The policy kicks in to pay any excess liability not covered by your standard business insurance policy.

How Does An Umbrella Business Policy Work?

Umbrella policies have simple structures that are not too difficult to understand. To illustrate such as policy, assume that you or an employee causes an accident. Several people sustain severe ideuries. The accident happens in your company car. As a result, the legal fees and costs of the accident amount to $2 million and include legal settlements, attorney's fees, hospitalization and medical costs. You only have $1 million in liability coverage. Who pays the other million? If you have an umbrella policy, the umbrella policy does.

If you don't have the policy in force, you would pay yourself, or your company would pay.

LLCs and Umbrella Policy

While an LLC structure provides some protection to businesses when it comes to such claims, there is also such a thing as 'piercing the corporate veil.' In this instance, if the plaintiff can provide evidence that the LLC and business owner were inseparable, then the business owner can be held personally liable, leaving his personal assets open to seizure.

Because of this, even if your business is set up as an LLC, having that extra layer of protection in place can be fundamental to keeping your business on the right track and progressively growing, even in the face of claims.

Arkansas Economic Data, Regulations And Limits On Commercial Insurance

Made In Arkansas

If you're a business-minded individual who has your sights set on Arkansas for their operations need to take several factors into consideration before they actually start a business. Specifically, they should determine is the conditions are favorable for entrepreneurs in general, and if the conditions are favorable for their specific industries.

No matter how high-quality the goods and services you offer are, if the specific location isn't favorable for businesses - and your specific sector - your corporation is going to have a hard time succeeding.

In this guide, we provide a brief overview of key factors that indicate whether or not Arkansas is a suitable location for your operations. We also cover some of the key commercial insurance policies that business owners are required to carry.

Economic Trends For Business Owners In Arkansas

Unemployment rate is a key factor in determining whether or not a state offers favorable conditions for those who are thinking about starting a business. According to most recent statistics issued by the Bureau of Labor Statistics, as of December, 2019, Arkansas' unemployment rate was 3.6%, 0.2% higher than the national unemployment rate, and 0.2% higher than it was in July of 2019.

However, it is 0.1% more people are employed now than they were in December, 2018, when the rate of unemployment was 3.7%. Despite the marginal increase, economists do predict that the workforce will increase or at the very least remain stable in upcoming years.

As with most states, the best places to start a business in Arkansas are the largest metropolitan areas. This includes Little Rock, Fayetteville, Fort Smith, and Hot Springs. The suburban areas that surround these cities are also good spots to establish a business. Some lesser-known cities are also experiencing economic and employment growth, such as Arkadelphia, Batesville, and Conway.

AR offers ample opportunities for business of all sizes and in a variety of industries. Some of the key sectors include:

  • Aerospace and defense
  • Agriculture
  • Cybersecurity
  • Forestry and timber
  • Information technology
  • Manufacturing
  • Transportation and logistics
Commercial Insurance Requirements In Arkansas

The Arkansas Department of Insurance regulates insurance in AR. Arkansas mandates very few forms of insurance coverage by law. They enforce worker's compensation.

Arkansas requires you to have worker's compensation insurance if you have 3 or more employees. In the construction industry, businesses with fewer than three employees must provide workers' compensation. This includes part-time employees, family members, minors, and immigrant employees. It is not required for independent contractors or domestic employees, though you should check to make sure any contractors you have are true contractors, and not employees.

Arkansas also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.

Additional Resources For Small Business Insurance

Protect your company and employees with the right commercial insurance policies. Read informative articles on small business insurance coverages - and how they can help shield your company from legal liabilities.


Small Business Commercial Insurance

Your small business faces many potential disasters including: fire, floods, theft, equipment breakdown, lawsuits from clients or customers and current & former employees. Any many other risks you haven't even thought about.

A small business commercial insurance program should provide protection for both larger and smaller disasters. The obvious things like fire, flood and theft most business owners think about... but what if a hacker infects your computers with a virus - and files containing private customer information like credit card and Social Security numbers are stolen?

Who is going to pay to fix your customers credit rating etc...? Will your insurance pay for the cost? You need to know that.

Your commercial insurance program should cover events that can close down your company, or cause it to lose revenue. Anything less than that is not enough coverage. Commmercial insurance doesn't cover everything, and all policies have exclusions and limits.

You need a written plan that allows you to get your operations back up and running as quick as possible.


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Also find Arkansas insurance agents & brokers and learn about Arkansas small business insurance requirements for general liability, business property, commercial auto & workers compensation including AR business insurance costs. Call us (501) 261-6101.

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