Commercial Umbrella Insurance

Commercial Umbrella insurance acts as a secondary safety net that goes beyond the limits of your standard business insurance policies. It provides additional financial protection in case you face claims exceeding your primary coverage limits. Here's how it works:

How does it work?

Imagine a layered cake:

• Bottom layer: Your primary business insurance policies (general liability, commercial auto, property, etc.) form the bottom layer, each with its own specific coverage limits.
• Middle layers: Each primary policy covers claims up to its individual limit. If a claim exceeds the limit of a particular policy, you're responsible for the remaining costs unless you have additional coverage.
• Top layer: Commercial umbrella insurance sits on top of your primary policies, acting as the final layer of protection. It kicks in only after all your primary policies have exhausted their limits.

What does it cover?

While the specific details can vary based on the policy, umbrella insurance typically offers broader coverage than standard business insurance, potentially encompassing:

• Liability: Protects against lawsuits, product liability claims, advertising injuries, and more, exceeding the limits of your general liability or other liability policies.
• Property damage: Covers damage to your own or others' property beyond your primary policy limits.
• Employment-related claims: May offer protection against certain employee-related claims exceeding standard coverage.

Benefits of Commercial Umbrella Insurance:

• Increased financial protection: Provides significantly higher payout limits compared to primary policies, offering peace of mind in case of catastrophic events.
• Broader coverage: Extends protection beyond standard policies, potentially covering a wider range of claims.
• Cost-effective: Compared to purchasing high limits on several individual policies, an umbrella policy can be more affordable for covering larger potential losses.

Things to consider:

• Limits: Choose a policy with limits exceeding your existing coverage needs and exceeding the combined limits of your primary policies.
• Exclusions: Review the policy carefully to understand any excluded events or situations.
• Cost: Weigh the cost of the policy against the potential benefits and your risk profile.

Remember: It's crucial to understand your business's specific risks and consult with an insurance professional to determine if an umbrella policy is necessary and what coverage limits are appropriate. Umbrella insurance doesn't replace your primary business insurance; it complements it for comprehensive protection.