Commercial Umbrella Insurance renders an additional shield of liability protection. It covers the costs which are over and above the liability coverage limits. To put simply, it backs up your other liability coverages by taking overcharges when the limit has been exceeded.
Cost of Commercial Umbrella Insurance
This type of insurance policy for $1 million coverage could cost as low as a few hundred dollars. Nevertheless, it is not provided on its own as it operates hands in hands with another liability cover including general liability insurance.
What does Commercial Umbrella Insurance Cover?
Third-party bodily injury
When this type of liability insurance is added to general liability, it could cover medical or legal expenses when someone gets injured inside your home or business.
In combination, this policy when paired with Worker Compensation assists against the claims made up by an employee when injured.
Commercial auto insurance policy, with the commercial umbrella liability insurance, could be a significant help in covering the cost when a person claims a lawsuit for such damages which are inflicted by your vehicle.
Damages within the mentioned limits
It is a rule that the umbrella liability insurance never becomes active as long as the underlying policy has not reached its limits.
It can also include coverage for errors & omission insurance, professional liability insurance, and even malpractice insurance.
For such lawsuits or court claims which arise due to reasons like wrongful termination, harassment or discrimination, employment practice liability insurance can provide protection.
Business property damage
The commercial property insurance part of the business owner’s policy could assist in paying for expenses to repair or replace your business property when it’s damaged by fire, theft, and some weather-related events. But is not covered under the Commercial Umbrella Insurance policy.
Commercial Liability Insurance Options
Other than a commercial umbrella, there are varied other endorsements which might be ideal for your business requirements, like:
- Hired & unowned auto liability: It provides auto liability cover when workers rent or utilize their own vehicles for work purposes.
- Employment practices liability insurance: Protects against the odds of lawsuits.
- Directors and officer’s liability insurance: Covers defense charges & losses against director or officer.
- Liquor liability insurance: Safeguards against injury claims when alcohol is served during business activities.
- Fire legal liability insurance: Shields when you are held responsible for a fire in rented or leased space.
For more updates and information about stand-alone Commercial Umbrella Insurance or as a package with your liability insurance, get in touch with our agents today!