Commercial Umbrella

Commercial Umbrella Information

The Basics of Commercial Umbrella Insurance

Standard business liability coverage will take care of you in most situations, but when serious situations arise, Commercial Umbrella Insurance will help ensure that your business is protected.
A commercial umbrella policy serves two distinct purposes:

• It expands the limit that your company already has in its existing, or underlying, liability policies. If your general liability policy offers $1 million coverage per occurrence or $2 million total, you could expand those limits to $3 million per occurrence and $4 million aggregate with a $2 million umbrella policy.
• It broadens coverage for things that your underlying policies may not cover. If your auto liability policy covers accidents that might occur in a specific area, an umbrella policy could expand the coverage territory.

Why is Commercial Umbrella Insurance Important?

Commercial Umbrella Insurance provides businesses with additional liability coverage to help protect them against the potentially large claims. Significant assets can be at risk when businesses are the target of lawsuits. If the cost of a claim exceeds the limits of a business’s underlying primary insurance policies, Commercial Umbrella Insurance extends liability coverage for an additional layer of insurance to further protect business assets. Without Commercial Umbrella Insurance, business owners could be obligated to pay out of pocket for legal fees, medical bills, and damage expenses that exceed the limits of their underlying primary business coverages.

What to Discuss With Your Agent

Before buying a Commercial Umbrella policy, be prepared to discuss the following with your independent insurance agent:

• The type of business you operate, and the specific risks that are present in your industry.
• Your current Liability limits for General Liability, Commercial Auto, and Workers Comp.
• Requirements from General Contractors for you to hold higher than normal limits.
• The insurance provider’s reputation for customer service and ability to pay claims.
• The responsiveness of the Insurance Agency staff when it comes to generating certificates, processing policy changes, and managing claims.