Umbrella Insurance—A Safety Net that Protects the Heart of Your Business
While standard property and liability policies cover your company in many situations, Commercial Umbrella coverage helps protect against a significant or catastrophic event. For example:
- An employee driving a company vehicle causes an accident resulting in injuries to others.
- Your business is found liable for a customer’s illness.
- There’s a carbon monoxide leak in your building that results in multiple injuries and/or deaths.
- An advertisement you created lists the wrong phone number, causing thousands of annoying phone calls to an unrelated business, and that owner sues.
When you add up expenses such as court costs, attorney fees, settlements, and damages, you may find the amount of liability protection from your standard business insurance does not provide enough financial protection. For example, your standard policy provides $1 million in liability limits, but your company is required to pay a settlement of $2 million. Without umbrella coverage, your business would be responsible for the remaining $1 million. This may mean you need to sell your equipment and other assets, cut staff, or possibly close the doors.
A Commercial Umbrella policy reduces the risk from lawsuits and other liabilities that can threaten your company. This coverage is typically only used when your standard business policies have reached their limits, which makes it more cost effective than simply opting for higher limits on your existing policies. This is because it is not primary insurance, rather secondary insurance coverage. Ask your insurance professional for more details.
An Experienced Team with Heart
Your local agent, working with our business insurance professionals, will help determine your risks and the potential for lawsuits and other liabilities. We will then guide you through the options and help you select the amount of umbrella insurance coverage that is appropriate for the size and type of your business. Establishing and running your own business is scary enough. You’ll want to work with an insurance company that knows you and supports you when you need it most. Commercial Umbrella coverage is available with commercial insurance package policies. Contact your local insurance agent for additional details.