Commercial Umbrella Insurance provides extra protection by covering costs that are not covered in your other liability coverage limits. Commercial umbrella insurance complements all your other liability coverages by taking over when you reach other liability coverage limits.
A commercial umbrella insurance policy with $1 million in coverage can cost as low as a few hundred dollars a year. However, you must know that umbrella insurance is not offered as a stand-alone independent coverage; it works together with your other liability coverages, like general liability insurance –which is perhaps your most expensive policy.
Commercial umbrella insurance covers the same types of costs as business liability insurance, such as medical expenses, attorney fees, and damages when your company faces a lawsuit.
How Does Commercial Umbrella Insurance Work?
For example, if one of your employees is at work and meets with a car accident. Your employee is at fault and the accident cost from bodily injury damage and property damage goes beyond the liability limit on your commercial auto insurance policy. In such a case, without a commercial umbrella policy, you might be required to pay for those expenses out of your business funds, adversely affecting you. With a commercial umbrella policy, you wouldn’t need to do that. A commercial umbrella policy shall pay for liability costs over and above your primary liability policy’s limit.
What Is Not Covered By Commercial Umbrella Insurance?
Insurance claims may not cover damages that are covered by a commercial property insurance policy.
Let us take an example, say a fire in your office premises damages the business equipment and machinery. For this, you would need to pay with your commercial property insurance coverage without the support of a commercial umbrella insurance policy.
Who Should buy Commercial Umbrella Insurance?
Usually, the more in-person client interaction your business has, the greater your company’s liability risk is. Risks are even greater if your employees are required to use hazardous, dangerous, or heavy-duty equipment while on the job. Both of these situations would need you to extend the liability limits with commercial umbrella insurance.
Let EZ Online Service help you choose a policy that will fit your needs. Protecting all your assets, whether business, personal or both, is our primary goal. An insurance policy chosen by an expert can lessen the impact of some of life’s most common, yet unforeseen accidents.
