Commercial Umbrella Insurance

What do you do if your company is sued after being found liable for a customer’s injury at your place of business, but the cost exceeds your business liability coverage? Commercial umbrella insurance acts as a complement to your existing insurance policies by taking over when your other liability coverage limits have been reached. When it comes to liability loss, an umbrella insurance policy can be the key to the survival of your business.


What Is a Commercial Umbrella Policy?

A commercial umbrella policy can help protect a company’s assets by providing additional liability coverage. Additionally, this plan can even broaden your protection. In essence, a commercial umbrella policy is put in place to cover costs that go beyond the limits of your existing insurance policies.

In the example above of the customer’s injury, if your company has only $1 million in liability coverage but is sued for $1.5 million, having an umbrella policy in place can provide partial or full coverage for the outstanding $500,000 (depending on your policy’s coverage limits). It is highly recommended that all businesses include commercial umbrella coverage in their insurance program.

What Does Umbrella Insurance Cover?

Acting as a supplementary coverage to business liability insurance, a commercial umbrella policy covers general claims involving bodily injuries and property damage. This includes covering medical expenses and attorney fees for which your company may be legally responsible. Like general liability insurance, an umbrella policy does not cover employee injuries, auto accidents, workmanship, punitive damages, or intentional acts or professional mistakes.

What Does a Commercial Umbrella Policy Cost?

Umbrella insurance works in conjunction with your other liability coverages and is not offered as a stand-alone insurance option. Generally, a commercial umbrella policy worth $1 million in coverage can cost you no more than a few hundred dollars a year in addition to the costs of your other policies.

What Is Excess Liability Coverage?

If you need extra liability limits over what an umbrella policy can offer, excess liability coverage may be the right fit for you. An excess liability policy allows for higher limits, which may be necessary for businesses with high profile, sizable sales, numerous assets, large auto fleets, worldwide presence and/or significant public exposure, and high loss potential,.

Other Commercial Liability Insurance Options

Not sure if a commercial umbrella policy is the right fit for your business? Looking for more specific commercial liability insurance? Some additional options for endorsements with coverage beyond bodily injuries and property damage include:

  • Directors and officers liability insurance
  • Liquor liability insurance
  • Hired and non-owned auto liability insurance
  • Employment practices liability insurance
  • Fire legal liability insurance

While no business owner wants to face a lawsuit, it’s imperative that the potential cost of legal fees and settlements be taken into consideration by any business owner. Liability losses can happen unexpectedly, but having a commercial umbrella policy in place can protect your business from facing bankruptcy or worse. Don’t let your business get caught in the rain without an umbrella. Visit ISU Armac today to make sure you’re covered.

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