This type of insurance covers you for what your general liability coverage doesn’t cover. You never think it is going to happen to you. As with many insurance plans, your general liability policy will outline the maximum amount the insurance company will pay against a liability claim. Therefore, if your small business is sued for $250,000 for pain or suffering or damages associated with an injury caused by a worksite hazard, plus an additional $100,000 in legal fees, but your coverage maxes out at $300,000, then you are responsible for paying the difference of $50,000.
If you are on the higher end of the risk scale and already have general liability insurance, you can also opt for excess insurance or umbrella insurance that increases your coverage limits. This will cover you in situations in which you’re worried that your existing coverage won’t cover all your costs should someone file and win a claim against you.