Commercial Umbrella

Chances are you’ve heard of and purchased commercial property insurance and commercial liability insurance for your business, but what is commercial umbrella insurance and why do you need it? Essentially, umbrella insurance adds another layer of protection on top of your existing policies, like an umbrella shields everything underneath it from the elements. If an extremely high claim exceeds policy limits on your underlying coverage, that’s when umbrella insurance kicks in to cover the rest of the claim.

But what types of claims would be high enough to necessitate this coverage?

• A defective product could injure a customer, who then sues for medical expenses, lost wages and pain and suffering.
• Your workplace and all of its contents could burn to the ground after an electrical fire ignites.
• A power surge could destroy electrical equipment and buying new hardware could be a financial burden.
• Another business could sue your business for copyright infringement.
• A catering van could cause an accident in which multiple drivers are injured, resulting in very high liability costs.
• The possibilities are endless.

If your property is underinsured or if you experience a costly liability claim, the remaining balance after filing a claim on your business’ property or liability insurance could be damaging enough to force you to permanently close your doors. But umbrella insurance can quite literally come to the rescue when it comes to those remaining expenses.

Additionally, depending on your insurance provider, umbrella insurance may cover some incidents that are excluded from underlying policies, which may include false arrest, libel and slander.

Interested in learning more? Contact your independent insurance agent to learn how commercial umbrella insurance, often sold in increments of $1 million, can benefit your business today. You may be surprised to see that your quote is more affordable than you would’ve guessed.