Commercial Umbrella Insurance Made Easy

Hey there, fellow business owners! As entrepreneurs, we’re used to taking risks and embracing the unknown. But sometimes, we need a little backup to protect us from life’s unexpected curveballs. That’s where commercial umbrella insurance comes in!

What Is Commercial Umbrella Insurance?

This insurance is like a trusty umbrella on a rainy day – it provides an extra layer of protection to shield you from the elements. In this case, the elements are unexpected events that could harm your business. If your business is ever sued for damages that exceed your primary insurance policy limits, your commercial umbrella policy will kick in and cover the rest.

Why Your Business Needs Commercial Umbrella Policy

Listen, we know you’re smart and savvy. You probably already have a solid insurance policy to protect your business. But have you thought about the worst-case scenario? What if your business is sued for more than your insurance policy covers? That’s where insurance comes in! It’s like a superhero swooping in to save the day (and your bank account).

Plus, having this insurance can make your business look more professional and trustworthy. It shows that you take your responsibilities seriously and are prepared for whatever may come your way.

How Much Coverage Do You Need?

We get it – figuring out umbrella insurance liability coverage limits can be a total snoozefest. But don’t worry; we’re here to help. Assess your business risks and assets to determine how much insurance you need. Consider factors like the size of your business, the industry you’re in, and any potential liabilities. Then, work with an insurance agent or broker such as BIGinsurance.com to determine the appropriate coverage limits.

What Does Commercial Umbrella Policy Cover?

Umbrella insurance covers a variety of claims that could arise against your business, such as bodily injury, property damage, legal expenses, libel and slander, discrimination, someone else’s property, sexual harassment, etc.

But, as with any insurance policy, there are exclusions and limitations. So, read the fine print and understand what’s covered (and what’s not) before signing on the dotted line.

What Is Not Covered By a Business Umbrella Policy?

While umbrella insurance can provide additional liability coverage beyond the limits of your primary and/or general liability insurance policy, certain things may not be in the insurance coverage. Here are some common exclusions or limitations that may apply:

1. Intentional acts: Umbrella insurance typically does not cover damages or medical expenses that result from intentional or criminal acts.
2. Certain types of liability: While umbrella insurance covers a wide range of liability claims, it may not cover every type of claim. For example, some policies may exclude coverage for environmental pollution or employment practices liability.
3. Property damage to your property: Umbrella liability insurance generally does not cover damage to your business property or commercial vehicles. This would typically be covered by property insurance and commercial property insurance. 
4. Workers’ compensation claims: Workers’ compensation insurance is a separate business insurance provided by an insurance company that covers on-the-job injuries for your employees. Umbrella insurance typically does not protect workers’ compensation.
5. Contractual liability: If your business has contractual obligations, such as a lease or a vendor agreement, your insurance policy and liability protection may not cover damages or losses resulting from a breach of those obligations.

It’s important to carefully review your umbrella policy and understand what is and is not covered. Then, if you have any questions or concerns about your coverage, don’t hesitate to speak with your insurance agent or broker.

How To Purchase Umbrella Insurance

Buying insurance might not be the most exciting thing on your to-do list, but it’s essential nonetheless. Work with an insurance agent at BIGinsurance.com to compare coverage and pricing from different insurance providers. We’ll be able to help you find the right policy to fit your business’s unique needs.

Conclusion

Well, folks, there you have it. Commercial umbrella insurance might not be the most exciting topic, but it’s essential. Adding an extra layer of protection to your existing  business insurance policy lets you rest easy knowing that you’re prepared for whatever comes your way and your liability risk is covered. Plus, you’ll look pretty darn cool doing it!

Frequently Asked Questions About Commercial Umbrella Insurance

Who Needs Umbrella Insurance?

Any business that wants to protect itself from financial losses and higher liability risk should consider a commercial umbrella policy.

How Much Does Commercial Umbrella Insurance Cost?

The cost of umbrella insurance varies depending on the size and industry of your business and the coverage limits you choose. Head on over to Biginsurance.com to get a quote.

How Do I Purchase Commercial Umbrella Insurance?

Work with an insurance agent or broker to compare coverage and pricing from different insurance providers. They’ll be able to help you find the right policy to fit your business’s unique needs.

What Happens If I Don’t Have Enough Coverage?

Suppose you’re sued for damages that exceed your insurance policy limits and underlying insurance policy. You could be on the hook for the difference if you don’t have insurance. This could lead to financial hardship or even bankruptcy, so ensuring adequate coverage is important.

Does Umbrella Insurance Cover All Types Of Liability Claims?

While umbrella insurance covers a wide range of liability claims, it may not cover every type of claim. For example, some policies may exclude coverage for intentional wrongdoing or criminal acts.

Do I Need To Have a Primary Insurance Policy To Purchase Commercial Umbrella Insurance?

Yes, you typically need to have a primary insurance policy before purchasing a commercial umbrella policy. The primary policy will cover up to its limits, and the umbrella policy will provide additional coverage beyond those liability coverage limits.

Can I Customize My Umbrella Liability Insurance?

Yes, many insurance providers offer customizable insurance policies. You can work with an insurance agent or broker to tailor the policy to fit your business’s needs.

What Is the Difference Between Commercial Umbrella Insurance and Excess Liability Insurance?

Commercial umbrella insurance and excess liability insurance are similar in that they both provide additional liability coverage beyond the limits of your primary insurance policy. However, commercial umbrella insurance typically offers broader coverage and higher limits than excess liability insurance.

How Does Commercial Umbrella Insurance Affect My Overall Insurance Costs?

Adding a commercial umbrella insurance policy to your coverage may increase overall insurance costs, but it can also provide valuable protection and peace of mind. Work with an insurance agent or broker to compare coverage and pricing from different providers and find a policy that fits your budget.

Can I Cancel My Umbrella Insurance Policy If I No Longer Need It?

Yes, you can typically cancel your umbrella insurance policy at any time. However, keep in mind that you may still be responsible for paying any premiums owed for the coverage period.