UMBRELLA/EXCESS INSURANCE

WHAT IS IT AND WHY IS COMMERCIAL UMBRELLA INSURANCE IMPORTANT?

Many business owners purchase commercial umbrella insurance as an added layer of protection even though General Liability Insurance  and Commercial Auto Insurance policies cover a lot on behalf of a business. This is because in some cases, the coverage that standard policies provide may only go so far. Say someone sues your clients business for $1.5 million and wins, and your standard policy provides only $1 million in coverage — that’s half a million dollars that would become your clients expense. It’s no secret that we live in a litigious society. In today’s business world, business umbrella insurance is almost essential.

WHAT DOES BUSINESS UMBRELLA INSURANCE COVER?


A Business Umbrella Policy increases your clients business liability protection when the costs of a lawsuit exceed the limits of the primary business liability coverage. So, a commercial umbrella insurance policy will  protect a business when accidents like the ones below happen:

  • A customer slips on a wet floor in a clients office and injures himself. The medical costs of the injuries exceed your clients general liability limits.
  • An advertising error results in major lawsuits against your clients business with costs that exceed their primary business liability insurance limits.

In all cases a business umbrella policy will extend coverage over a Commercial Auto, General Liability and Workers Compensation policy.