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Each commercial insurance policy comes with a specific set of terms, limits, and exclusions. Commercial umbrella insurance, also known as umbrella liability insurance, acts as a safety net when those terms and limits are exceeded. Commercial umbrella insurance covers the same type of exposures as existing policies and supplements coverage gaps to provide additional protection when you might need it most.
You should have commercial umbrella liability if you need high coverage limits or if you face higher-than-average risk. Please be aware that some states don’t offer commercial umbrella coverage, so it’s best to connect with an experienced agent who understands your level of risk and state regulations.
Here are a few reasons why a business might need commercial umbrella insurance:
To reduce the amount of damage that multiple claims or large legal settlements could cause.
To save money versus increasing limits on an underlying policy.
The additional coverage amount might be a requirement for a lease or contract.
To save money versus increasing limits on an underlying policy.
The additional coverage amount might be a requirement for a lease or contract.
Commercial umbrella insurance covers a wide range of risks your business may face. Here are just a few examples:
An employee might cause a major car accident with multiple claims. If your underlying coverage has reached its limit, your commercial umbrella policy supplements it to cover the additional costs.
If your business is sued and found liable for millions of dollars but doesn’t have enough liability insurance to cover it, commercial umbrella insurance can handle the excess legal expense and judgment.
You or an employee could cause significant damage while working on someone else’s property, requiring supplemental coverage.
If your business is sued and found liable for millions of dollars but doesn’t have enough liability insurance to cover it, commercial umbrella insurance can handle the excess legal expense and judgment.
You or an employee could cause significant damage while working on someone else’s property, requiring supplemental coverage.
The average annual cost of a commercial umbrella policy can start at around $900 for a small business, but coverage costs will vary.
It’s also important to know that commercial umbrella insurance is not standalone coverage, so you’ll need to purchase it on top of one or more underlying policies. Here are a few factors that can influence the price of an umbrella policy for your business:
Though commercial umbrella insurance covers some of today's most common business risks, it is very specialized. Most business owners require more than that to protect themselves. Here are just a few other common examples of risks and coverages and why you may need them to protect your business:
A business owner’s policy provides comprehensive coverage by bundling general liability insurance, commercial property insurance, and business income interruption insurance into a single policy. This makes the insurance process easier and more affordable.
A commercial auto policy covers vehicles used for business purposes, including cars, trucks, vans, and other vehicles owned or leased by your business.
A general liability policy covers your business from financial losses and/or legal expenses resulting from any injury experienced by a customer or damage caused to your customer’s property.
A cyber insurance policy protects you against the consequences of a cyber incident, such as data breaches, network security failures, cyber extortion (ex. ransomware) and other cyber attacks.
Workers’ compensation insurance protects employers and employees, covering financial needs in case of any workplace illness or injury. This insurance is required by law in most states.
A professional liability (E&O) policy covers the risks of professional services providers. If you advise or offer professional services (ex., accountant, consultant, lawyer, engineer, doctor, etc.) and you or your employee make a mistake that causes a loss for your customer, you are liable for that mistake and can be sued.
By now you understand how important it is for your business to be properly insured. What’s next?
Call (380) 225-5242 to connect with an experienced insurance agent who understands the nuances of your business and industry.