Business insurance, including commercial umbrella insurance, is critical protection that almost all companies need to protect themselves, their employees, and their customers.
As a business owner, you likely have standard commercial insurance; however, have you included an umbrella insurance policy in the insurance portfolio?
Read on to learn more about these policies and why you should discuss one with an insurance agency that is knowledgeable about the protection offered by umbrella insurance policies.
What Coverage Does Commercial Umbrella Insurance Provide?
Commercial umbrella insurance is a liability policy that supplements regular General Liability, Commercial Auto, and Employer's Liability business policies by supplementing those polices when coverage limits have been exhausted.
A commercial umbrella policy extends underlying liability insurance in the event that a company is found liable for an act and damages outweigh what regular business liability insurance provides.
Commercial umbrella policies typically cover everything the standard policy covers and some policies also provide additional coverage beyond what the standard policy covers.
Policies range from one million in additional coverage to many millions depending on the business, its current policy, and the liability risk.
Why Pay For A Commercial Umbrella Insurance Policy?
While insurance costs are a significant concern for all business owners, there are valid reasons why you need an umbrella policy in addition to standard business policies provided by a commercial insurance agency.
This excess liability coverage can make the difference between the business surviving or you being forced to shut down should a catastrophic loss far exceed the standard policy limits.
Protecting a business this way means preserving:
- All of its assets.
- Its ability to continue to generate income and profit.
- Your way of life and ability to earn an income from that business.
- Your personal property and wealth in some cases.
Commercial umbrella policies cover property and personal injury damage that exceeds standard commercial auto and business liability limits, legal costs, and many other liabilities that a business might have.
Who Needs Commercial Umbrella Insurance?
Although many business owners believe commercial umbrella insurance is only important for big businesses with many assets, this is not so.
In reality, it is the smaller businesses that benefit the most from purchasing this coverage from a business insurance agency as they are the ones most in danger of being put out of business by catastrophic liability losses.
Rather than take that risk, it is recommended that any small or large business take out an umbrella liability policy if the company deals with the public in any way.
This includes companies selling products that could cause a liability, consulting firms, any business that could be accused of libel or reputation damage, and many others.
A Commercial Umbrella Insurance Agency Can Help
If you own a business, even a small one, commercial umbrella insurance is a critical protection that could one day save your company from an unexpected liability.
Fortunately, commercial umbrella policies are a relatively inexpensive addition to a company’s insurance portfolio.
Contact a business insurance agency that offers umbrella policies to discuss your company and how to protect it from catastrophic liabilities and gain important peace of mind!
