COMMERCIAL UMBRELLA INSURANCE

Running a business successfully is a complex endeavor. As an entrepreneur, you are required to handle a variety of tasks to ensure your business prospers. One critical element that should never be neglected is commercial umbrella insurance.

This type of insurance offers additional coverage beyond your existing liability limits, bridging the gap between potential financial setbacks and ongoing business operations.

Investing in commercial umbrella insurance means you’re equipped for unforeseen legal battles or accidents. It reflects your commitment as a proactive and prudent business owner dedicated to safeguarding your assets.

Understanding  Commercial Umbrella Insurance 

Commercial umbrella insurance is an economical approach to enhance your business’s liability coverage. It adds an extra layer of financial security by providing higher policy limits for liability claims.

Typically, a standard general liability insurance policy includes a per occurrence limit and an aggregate limit. The per occurrence limit caps the payout for each covered claim, while the aggregate limit is the total amount your policy will pay in a given one-year period.

For example, imagine your general liability policy has a per occurrence limit of $250,000, but you face a claim of $1 million. Your primary policy would cover $250,000, and your commercial umbrella insurance would cover the remaining $750,000, thus saving you from out-of-pocket expenses.

Furthermore, if your policy’s aggregate limit is $1 million and you encounter claims exceeding this amount within the year, your commercial umbrella insurance would cover the additional costs.

In essence, having commercial umbrella insurance ensures that your business is financially protected against claims that exceed the limits of your existing policy.

Coverage Details of Commercial Umbrella Insurance

Commercial umbrella insurance typically extends to the same scenarios covered under general liability insurance, such as bodily injury and property damage. It also covers legal defense costs, settlements, or damages awarded from lawsuits. Moreover, this insurance expands your liability protection to include situations not usually covered by your standard business liability policies.