The 3 Things a Commercial Umbrella Insurance Policy Covers

A commercial umbrella insurance policy is an essential investment for every business to protect itself from liability. Although your business property coverage may include some liability coverage, you likely need more for a severe incident. Many companies need an umbrella policy for sufficient liability protection. There are a few key benefits to investing in an umbrella policy.

Commercial Umbrella Insurance Extends Your Liability Limits

High-risk and high-value businesses are often at higher risk of targeted liability claims that can prove costly. When you worry about protecting your investment, you need sufficient liability coverage for the risk exposure level. Unfortunately, most property policies limit the amount of liability they can extend, which is often insufficient for adequate protection. A general liability umbrella opens your liability limits to help protect your business from significant losses.

Umbrella Insurance Covers Losses Often Excluded From Property Liability

The liability coverage extended by most commercial property policies comes with exclusions. When you invest in an umbrella policy, the coverage often extends to losses that standard policies exclude. If you worry about specific types of losses, discuss them with your agent and carefully read the policy binder and coverage limitations.

Umbrella Coverage Helps When You Exhaust Your Other Policy

If your commercial property policy has made payments on a liability claim and reached the ceiling of your liability limits, your commercial umbrella policy automatically applies to any remaining amounts. It serves as secondary coverage, allowing you to rely on your property policy first but extending you the additional benefit when necessary.

The Main Purpose of an Umbrella Policy is Peace of Mind

There are many reasons to invest in an umbrella policy, but the primary purpose of these policies is to ensure that you protect your company’s liability exposure. Whether you’re required to carry additional liability insurance as part of a contract agreement or your company is overseeing independent contractors and other participants, you need to protect your interests. A substantial claim could leave you facing losses not only professionally but personally as the named owner of the business.

Commercial Umbrella Insurance Is Flexible

When you decide to invest in a commercial umbrella policy, the flexibility of your coverage options may surprise you. These policies are most commonly sold in million-dollar increments, allowing you to purchase the liability protection you feel is necessary for your business. Consider your liability exposure, the risk level of your industry, and your personal financial position as you determine the adequate coverage limits. You should have enough liability coverage to address the most significant potential liability claim your company could face. Your agent can help you assess these risk factors to choose the proper commercial umbrella insurance limits for your needs.

About David G. Sayles Insurance Services

At David G. Sayles Insurance Services, we help our clients decide which of these options is best for them based on their current situation and risk factors.  Contact us at 1-855-977-1842 or insureme@dsayles.mysites.io for a consultation!