Commercial Umbrella Insurance
Commercial Umbrella Insurance Information
A customer slips on a wet floor in your office and severely injures her back. The medical costs run high. Your business has a general liability insurance policy that will help pay the cost of her medical bills. However, you general liability policy has a limit on how much the insurance company will pay out. After that limit is crossed, the medical expenses are the business owner's responsibility to pay out-of-pocket. How can you avoid this? Buy a commercial umbrella policy, which will give you higher limits of liability coverage.
Another example is an advertising error results in major lawsuits against your business. Lawsuits are very costly and the price could potentially exceed the limit on your general liability policy. This is where commercial umbrella comes in to provide you with a higher limit of liability for those expensive lawsuits that could ruin your business.
Your business has a general liability policy, but there are limits to how much the insurance will pay out if someone is hurt on your premises or using your product. If you are facing a lawsuit
What is Commercial Umbrella insurance?
Commercial umbrella insurance provides businesses with additional liability coverage to help protect them against the potentially ruinous cost of claims. Significant assets can be at risk when a business is the target of a lawsuit. Some claims can be very expensive and max out the limits on your general liability insurance policy. If the cost of a claim exceeds the limits on the underlying policy (such as a general liability policy), the commercial umbrella policy will extend the liability coverage limit to provide an additional layer of coverage. The goal is to protect the assets of the business. Without this coverage, a business owner would be required to pay out-of-pocket those legal fees, medical bills, and damage expenses that exceed those limits on the underlying policy. Most small businesses cannot afford to do this.
What are the benefits of commercial umbrella insurance?
Once your claim reaches your policy’s limits, your umbrella insurance helps cover the rest. Think of this policy as a literal umbrella perched above your underlying policies to add an extra layer of protection.
For example, say you have $1 million in coverage from your standard business insurance policies. If you face a legal settlement of $1.5 million, an umbrella policy will cover the additional $500,000.
We live in a litigious society. Lawsuits can cost a business millions. This coverage is a prudent decision to protect you against possible lawsuits. The high costs of a lawsuit can catch a business off-guard. But, umbrella insurance can keep you from permanently closing your doors.
If you want higher policy limits, umbrella insurance is an affordable way to get them. This is because you don’t have to raise the limits on your other individual policies. It is important to know that umbrella insurance will not extend coverage limits on errors and omissions or professional liability policies.
Pepe Insurance Agency who will help you find the right commercial umbrella insurance for your business. We will search through the many options available to find what fits you best. Give us a call or fill out a commercial umbrella insurance quote today!