A commercial liability umbrella policy is designed to provide an extra layer of protection by covering costs that exceed your existing liability coverage limits. It complements your existing liability coverages by taking over when your other liability coverage limits have been reached.
Commercial liability umbrella policies serve 2 main purposes:
- To increase the liability limit that your company already has an existing, or underlying, liability policy.
- To broaden coverage for things that your underlying policies may not cover.
Commercial umbrella insurance can only supplement coverage for certain underlying policies. These include general liability insurance, hired and non-owned auto liability insurance, and employer’s liability insurance. If you reach a limit on any or all of these policies, your commercial umbrella insurance may provide additional coverage for an approved claim.
How do you know if you need a commercial liability umbrella?
Consider the risks and needs of your specific business. Is your business open to the public? If so this can increase the likelihood of someone being injured on your property and potentially suing you. Do your employees drive their own cars for work purposes? You could be sued for damages in the event of an accident. Are your employees at risk of being injured on the job? Some work injuries could trigger lawsuits beyond your standard coverages.
Generally, you may benefit from commercial umbrella insurance if you are concerned about the coverage your primary policies provide. If you think your business is vulnerable to liabilities, you should discuss your options with your insurance agent.
How do you get a commercial liability umbrella?
Speak with your insurance agent. Every organization has different needs; therefore every insurance policy should be custom-tailored to those needs. Your insurance agent can walk through the different options with you and help you find the best coverage for your risks and budget.
When you meet with your insurance agent, bring the following with you to get the most accurate quote:
- The financial and operational details of your business
- A copy of the declaration page of your current general liability and business auto insurance policies
- Any prior losses your company has experienced.
- A list of your company’s officers, their positions, and experience
- Annual payroll and a breakdown of employees who are full-time, part-time, subcontractors, or consultants
- Be sure to mention any other liability policies you may carry on your business or organization
Give us a call at 844-GANNONS to discuss your insurance needs today!