Cover Your Assets

If you get sued, will your current liability coverage be sufficient? For most growing businesses, the answer is probably no, but increasing your liability limits can be costly. An affordable way to supplement your existing policy is with an umbrella policy that pays when your primary one runs out, says Greg Boots, attorney and partner with Anderson Business Advisors PLLC in Kent, Washington.

Usually, you'll get your umbrella policy from the company that provides your underlying insurance, and the terms will typically mirror your primary coverage. Be sure you understand what's included and what's not. "If an item is specifically excluded in your under-lying policy, it will not be covered by the umbrella policy," Boots explains.