An Additional Layer of Security
Commercial Umbrella Insurance
Extra Coverage for a Rainy Day
For large claims, you’d have to pay out of pocket for costs that go over your policy limits. That’s where Commercial Umbrella Insurance can help. It broadens coverage and extends the limits of certain liability policies.
If you’ve been thinking about adding an additional layer of security to your current liability insurance coverage, commercial umbrella insurance might be a smart option to explore.
Commercial Umbrella Insurance FAQ
No one can predict if something bad is going to happen to your business. However, that doesn’t mean you can’t take extra steps to protect yourself and your company if the unexpected does occur.
Commercial Umbrella Insurance provides additional coverage for liability claims that exceed the limits of other insurance. For example, if medical expenses and legal fees cost $1.5 million and your general liability policy only covers $1 million, the business umbrella policy would cover the remaining $500,000.
- Bodily injury, like a customer getting hurt at your business
- Property damage that your business caused
- Lawsuits from customers or employees with work-related injuries or illnesses
A commercial umbrella policy can be less expensive than increasing the limits on your other policies. Pricing factors include:
- Type and size of business
- Amount of umbrella coverage
- Amount of underlying coverage
If you think the cost of a claim could exceed your liability limits, it’s a good idea to consider commercial umbrella insurance. This coverage can help if your business:
- Interacts with the public
- Regularly works on someone else’s property
- Frequent lawsuits in your industry
These coverages are often confused, but there are important distinctions:
- An umbrella provides higher coverage limits for your primary policies in addition to covering exposure gaps in those policies
- Excess liability insurance serves as an extra layer of protection for losses in excess of your primary and umbrella policy limits but does not provide broader coverage beyond those underlying policies