WHEN TROUBLE RAINS, IT SOMETIMES POURS!

Protecting your company with basic liability coverage is a critical first line of defense. But sometimes, arming your operation – and your balance sheet – with an extra safeguard makes good business sense.

 

Let us be your sleep-well solution by sharing these tips about Commercial Umbrella coverage.
Think of Commercial Umbrella insurance as the safety net for your safety net. Specifically, an Umbrella Liability policy can supplement the coverage included in your:

  • General Liability Insurance
  • Employer’s Liability Insurance
  • Commercial Auto Liability Insurance

Note: An Umbrella policy cannot supplement the coverage of Professional Liability insurance, commonly known as Errors & Omissions (E&O), which helps protect professional advice- and service-providing individuals and companies from bearing the full cost of defending against negligence claims.

Some insurance companies require business owners to carry the minimum policy limits on any of these smaller business-insurance policies before off ering Commercial Umbrella coverage. For example, you may need a General Liability policy with a $1 million or $2 million limit before you can buy Umbrella Liability insurance.

HOW DOES IT WORK?
You can make a claim on a Commercial Umbrella policy when your business is sued due to customer injuries, customer property damage, or employee injuries not covered by a Workers’ Comp policy, and the cost of the lawsuit exceeds the limit of your underlying liability policy. Say you have General Liability insurance with a $1 million limit (which means it can pay up to $1 million toward your legal expenses), and a visitor is injured on your business premises. After a drawn-out legal battle that includes damages and legal fees, you owe $1.5 million – leaving you with a $500,000 bill that you still owe. Commercial Umbrella coverage can pay for expenses that exceed your underlying policy’s limit – in this case, that remaining half-million dollars.

COMMERCIAL UMBRELLA INSURANCE CAN INCREASE COVERAGE FOR:

• Slip-and-fall injuries
• Car accident liability
• Workers’ Comp lawsuits
• Lawsuits over third-party property damage

BUT CANNOT COVER:

• Malpractice lawsuits
• Professional liability lawsuits
• Employee discrimination lawsuits
• Property damage

WHO NEEDS IT?
Commercial Umbrella insurance used to be coverage purchased only by large enterprises. Today however, more and more small businesses are also investing in it. You might consider an Umbrella policy if:

  • You need more protection and are on a budget.
    Getting Commercial Umbrella coverage is often less
    costly than increasing the limits of your General
    Liability policy.
  • You have a client that requires more liability
    insurance. A Commercial Umbrella policy can
    often satisfy their requirements.
  • You have lots of contact with the public. The more
    visitors or foot traffic a business has, the greater the
    risks of injury or damage.
  • You worry about the exclusions in your other
    Liability policies. Some Commercial Umbrellas can
    cover risks that other underlying Liability coverages
    exclude. For example, most General Liability policies
    don’t include Liquor Liability insurance, but
    Commercial Umbrella coverage might.

THINGS TO REMEMBER
As you compare Umbrella insurance quotes and begin considering your options, consider these three important facts:

  1. You can’t buy Umbrella insurance without having at least one other policy: either General Liability, Employer’s Liability, or Commercial Auto.
  2. While Commercial Umbrella insurance can augment these three other policies, it cannot supplement Professional Liability coverage or help cover Professional Liability claims.
  3. Commercial Umbrella insurance comes in $1 million increments.