We have all heard the horror story: a customer falls inside a business, wins a judgment against the company for a massive amount of money, and the company is forced to file bankruptcy. Variations of this narrative are widespread, and while many business owners fear falling victim to a similar scenario, many fail to protect themselves with commercial umbrella insurance.
What Does Commercial Umbrella Insurance Cover?
Simply put, commercial umbrella insurance picks up where other business insurance policies leave off. Umbrella policies are not primary policies. Most commercial umbrella policies require the business to purchase primary insurance, such as general liability, auto liability, and workers compensation insurances, prior to writing the policy.
While the details of each commercial umbrella policy will vary, the purpose of the coverage is to provide an additional layer of security to your business. There are three primary ways commercial umbrella insurance coverage can protect you.
- When you exhaust your primary liability coverage during a lawsuit, your umbrella policy kicks in with higher limits.
- With liability exposures for which there is no primary coverage available, an umbrella policy may cover you.
- If your primary policy contains significant exclusions, you may be able to develop an umbrella policy that does not have similar exclusions.
Who Needs Commercial Umbrella Insurance?
In the past, big businesses were the most common target for lawsuits, but today, all businesses are at risk of having a lawsuit brought against them. Even the most cautious business owner may have an unforeseen event throw their business off track. Additionally, many business owners may find great value in a personal umbrella liability policy.
It is important to assess your risks and discuss your options with a trained insurance professional. At BenefitSource, we specialize in evaluating your business needs and working within your budget to get you the coverage that is best for you. Call us directly at (877) 215-5431 or email us to set up an appointment to discuss whether you need Umbrella Liability Insurance.
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