Commercial Umbrella Insurance
Whether you are in the beginning stages of building a business or have reached the point where it represents a well-working machine, Commercial Umbrella is protection you do not want to miss
Commercial Umbrella Insurance
Commercial Umbrella insurance is designed to protect the business from larger, more catastrophic claims. A proper Commercial Umbrella policy extends the coverage above your primary Business policies. It may also provide protection for gaps in coverages you may have with your underlying Business policies, such as Business Owner’s, General Liability, Auto, etc.
How Does Commercial Umbrella Insurance Work?
Here’s how it works:
- Increased Liability Coverage: If your business is sued and the liability claim exceeds the limits of your primary insurance policies, your Commercial Umbrella Insurance will kick in to provide additional coverage. It covers a wide range of liabilities, including bodily injury, property damage, personal injury, and advertising injury claims.
- Broader Protection: Commercial Umbrella Insurance not only increases the coverage limits but may also offer protection for certain risks that are excluded or not adequately covered by your primary policies. It acts as a safety net, offering more comprehensive protection for your business.
- Cost-Effectiveness: Purchasing higher coverage limits on your primary policies can be expensive. However, Commercial Umbrella Insurance provides extra coverage at a relatively lower cost than raising the limits on individual primary policies.
- Flexibility: Some Umbrella policies offer flexibility by extending the liability coverage even if your other business policies are with different insurance companies.
What Is Not Covered by a Commercial Umbrella?
While an Umbrella policy offers broad coverage, there are certain situations and types of claims that it typically does not cover. It’s essential to read the specific terms and conditions of the policy to understand its exclusions fully, as they can vary between insurance providers. Here are some common exclusions found in Business Umbrella policies:
Intentional Acts
Any intentional actions that cause harm or damage are generally not covered. The Umbrella policy is meant to provide extra protection for unforeseen accidents and not for purposeful wrongdoing.
Contractual Liability
The Umbrella policy may not cover liabilities arising from agreements and contracts entered into by the insured, such as indemnification clauses.
Employment Practices Liability
While it can provide excess coverage over Employer’s Liability insurance, certain employment-related claims like workplace discrimination or harassment may have specific exclusions.
Commercial Property
Commercial Umbrella insurance doesn’t extend the limits of Commercial Property. So, if the cost to replace equipment or repair your building after a loss exceeds your Commercial Property limits – you’d have to cover the difference out of pocket.
It’s important for businesses to purchase the proper Umbrella that fits their business needs. For example, a body shop may require an Umbrella that extends the Garage or Bailee Liability. At the same time, a restaurant may need an Umbrella that will extend the Liquor Liability in addition to General Liability coverage.
If you are looking for a Commercial Umbrella policy or Excess Liability insurance, contact us for a free quote or a consultation today!