What is Commercial Umbrella Insurance?

If you deliberately searched “what is commercial umbrella insurance?” online, you are on the right track to protecting your business.

In this economy, a business’s survival can be as fickle as a feather if you do not safeguard all fronts. While no one can predict a company’s future, it does not mean you cannot protect your business should the unfortunate happen.

An insurance policy is one way to protect your business, but sometimes your coverage may not be enough. Commercial umbrella insurance adds an extra layer of protection to your initial coverage.

This article will explore what commercial umbrella insurance is and how it can help you. If you want to keep your business secure, keep reading.

But first… What is Commercial Umbrella Insurance?

Commercial umbrella insurance is a type of insurance that reinforces your existing liability insurance policies. As the name suggests, it is like an umbrella that adds extra protection to extend your policy limits.

However, there’s a caveat. You can only purchase commercial umbrella insurance when you have existing policies at your disposal. Umbrella insurance increases your policies’ coverage amount by offering higher limits. In other words, it can fill the gaps in your current policy coverage.

Many businesses have three insurance coverage to help them against lawsuits and damage claims. These are:

• • General liability insurance: for property damage or injuries caused by your products, services or employees

• • Commercial auto insurance: for vehicles used by the company or your employees

• • Employer’s liability insurance: for profession-related illnesses or employee injuries outside the workers’ compensation insurance.

In some cases, even more than these may be needed.

Why Should You Avail a Commercial Umbrella Insurance?

Even with several policies safeguarding your business, sometimes claims and lawsuits can exceed your existing coverage limits. You will be forced to pay out of pocket for expenses exceeding your policies’ limits.

This is where commercial umbrella insurance comes in.

They help cover the costs of legal fees, damages, settlements or medical expenses beyond your limit.

Let us consider a scenario:

A man visited your store to buy some materials but slipped and fell on a wet floor. The accident injured him and hampered his ability to work for several months. Even though your business had liability insurance, the medical expenses plus his claim amounted to $2 million.

If your coverage covers up to $1.5 million, you must pay $500 thousand out-of-pocket to cover the rest. A commercial umbrella policy can help extend your coverage limit, which could cover the difference.

In other words, you will not have to dig into your bottom line to cover any expenses. But this depends on the commercial umbrella policy you purchase.

How to Choose the Right Commercial Umbrella Insurance?

Aside from asking, “what is commercial umbrella insurance?” knowing which policy to get is equally crucial. Northeast–MetroWest Insurance Agency offers commercial umbrella insurance for businesses throughout New England. 

If you are looking for commercial umbrella insurance, this is one of the best options out there! Reach out to Northeast–MetroWest Insurance Agency to speak with a professional who can answer all your questions