What Is Commercial Umbrella Insurance?
Commercial umbrella insurance is a type of policy that works on top of your existing liability policy to provide you with extra coverage for costs that exceed certain limits. Without it, you would be responsible for paying for any liability claims that cost more than your limit.
In some cases, having a commercial umbrella insurance could mean the difference between your business staying afloat or closing its doors in the wake of a catastrophic liability loss.
Think of it as a way of extending the limits on some of your primary liability policies, such as commercial auto insurance and general liability insurance. Because it is an extension rather than a standalone policy, you need to already have a general liability insurance policy in place before you can get commercial umbrella insurance.
It can cover:
- Medical bills
- Legal expenses
- Damage to other people’s property
Burton & Company’s commercial umbrella insurance is flexible. We’ll work with you to determine where your greatest areas of risk are and find ways to address it. We can even write policies that extend the liability coverage of policies you have from other insurance companies.
When Does Your Business Need This Insurance?
Imagine that a customer trips and falls at your business, and there is a lengthy legal battle. The total for the medical expenses, damages and legal fees adds up to $3 million, but your commercial general liability policy only has a $2 million per-occurrence limit. This means it will only pay $2 million toward your legal expenses, and you’ll be responsible for the remaining $1 million.
If you have an umbrella policy, it could cover the additional $1 million. If not, you would have to pay it out of pocket.
Umbrella policies come with aggregate limits that range from $1 million to $15 million. Our team will work with you to determine the best limit for your business.
Who Needs Commercial Umbrella Insurance?
Although commercial umbrella insurance is a useful product for all types of businesses, some business activities can put you at a higher risk of expensive lawsuits. Here are some of the characteristics of businesses that can benefit from commercial umbrella insurance:
Your Business Interacts With The Public Regularly
If people can visit your business in person, there is a much greater risk of bodily injury. For example, a customer could trip and fall and sustain a serious injury.
Your Employees Work On Someone Else’s Property
Businesses that involve working offsite tend to have a greater risk of being held liable for property damage. For example, if your employees are working in a client’s home or office, accidentally breaking their windows or damaging their car could lead to a costly claim.
Your Employees Operate Dangerous Equipment
If your business involves the operation of heavy machinery or dangerous equipment, umbrella insurance can be useful in cases where an employee claims that your negligence resulted in an injury.
Your Business Owns A Fleet Of Vehicles
If your business has a fleet of vehicles, umbrella insurance could provide a valuable layer of protection against the cumulative costs of minor vehicle accidents.