What is Commercial Umbrella Insurance?

Commercial umbrella insurance provides an extra layer of liability protection by covering costs that go beyond your other liability coverage limits. Commercial umbrella insurance is meant to provide you with more comprehensive and complete coverage than what’s included in basic commercial liability policies. Umbrella policies typically come into play when you want to cover off some unanticipated event beyond the usual scope of your business operations.

What Does Commercial Umbrella Insurance Cover?

Commercial umbrellas can be used if, for example, someone had a slip-and-fall accident at your place of business or claims injuries from some allegedly faulty property condition on your premises. Business property policies may also help offset some unexpected expenditures, such as having to pay legal defense fees for libel or slander lawsuits filed against you by clients or who feel they weren’t fairly represented. Commercial liability policies also typically cover costs associated with hiring experts to ascertain the extent of your financial exposure, as well as motel and other living expenses if you have to vacate a commercial property due to a fire or other disaster.

Added Protection Where It Matters

Commercial umbrella insurance may be a smart addition to your business insurance package if you want peace of mind regarding potential liabilities with financial burden in the event of a serious claim. Umbrella liability insurance can help protect your assets from being drained by unexpected losses related to an unforeseen accident or legal action brought against your business as well as provide added resources for defense costs and settlement negotiations that might arise from such claims. Commercial liability insurance is designed not only to protect businesses but also their owners from catastrophizing events that happen more often than not. Umbrella insurance is essentially a commercial liability policy that provides additional layers of protection for your business and your assets. Commercial Umbrella Insurance

Avoid Unforeseen Circumstances

Now that you know what Commercial Umbrella Insurance is, why would you want Commercial Umbrella Insurance? First and foremost, if you have any assets to protect (even if it’s just the roof over your head), Commercial Umbrella Insurance should be purchased. Secondarily, if you engage in any activity where someone might want to sue you, Commercial Umbrella Insurance will cover costs above and beyond your general liability policies in most cases. I can’t tell you how many people have asked me which Commercial Liability Policy they should purchase because their existing insurance agent discuss Commercial Umbrella with them when they bought Commercial Liability Insurance. Commercial Umbrella Insurance is not interchangeable with Commercial Liability Insurance, Commercial General Liability Insurance, or Commercial Auto Insurance. 

Umbrella Insurance Summary

Umbrella insurance provides an extra layer of liability protection by covering costs that go beyond your other liability coverage limits. These policies typically come into play when you want to cover off some unanticipated event beyond the usual scope of your business operations. Umbrella Insurance can be a wise investment for small businesses who carry a large volume of business liabilities and lawsuits, or for anyone with a sizable estate to protect from legal action. However, if you have a simple home office set up or don’t do any outside sales, umbrella insurance probably isn’t going to be something you’ll need. Umbrella insurance is meant to provide you with more comprehensive and complete coverage than what’s included in basic commercial liability policies. In addition to protecting against accidents that happen on your property, Umbrella Insurance can protect your business from a wide variety of liabilities. Further information can be found here.

If you are in need of assistance in finding a Commercial Umbrella Policy that will match your needs, please contact us and we will work with you to tailor a package suited for your business.

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