Businesses are constantly exposed to several risks, potentially resulting in financial loss. While most companies have some form of insurance coverage, such as general liability or property insurance, they may not be sufficient to cover all possible losses. This is where commercial umbrella insurance comes in. Continue reading to learn about what is umbrella insurance, its coverages, and more.
What Is Commercial Umbrella Insurance?
Commercial umbrella insurance, also known as excess liability insurance, provides additional coverage beyond the limits of primary liability policies. In other words, if a claim exceeds the primary policy’s limits, umbrella insurance can cover the remaining costs up to the policy limit.
For example, if a company is sued for a liability claim that exceeds its general liability policy limit, the umbrella insurance policy would kick in to cover the additional costs. This can include legal fees, medical expenses, and damages awarded to the plaintiff.
What Does It Cover?
Commercial umbrella insurance can cover a wide range of liabilities, including:
- Bodily injury: If someone is injured on your property or due to your business operations, your umbrella policy can cover medical expenses, lost wages, and other damages.
- Property damage: If your business causes damage to someone else’s property, your umbrella policy can cover the repair or replacement costs.
- Libel and slander: If your business is sued for defamation, your umbrella policy can cover legal fees and damages awarded to the plaintiff.
- Product liability: If a product you manufacture or sell causes injury or damage, your umbrella policy can cover the costs of the resulting lawsuits.
- Professional liability: If your business provides professional services, such as consulting or advice, your umbrella policy can cover claims of negligence or errors and omissions.
Who Needs Commercial Umbrella Insurance?
While any business can benefit from commercial umbrella insurance, it is essential for those that face a higher risk of liability claims. This includes construction, manufacturing, and healthcare businesses, where accidents or mistakes can result in significant financial losses.
Small businesses may also benefit from umbrella insurance, as they may need more resources to cover large liability claims independently. Companies with a high net worth or valuable assets may want to consider umbrella insurance to protect their assets in a lawsuit.
How Much Does It Cost?
The cost of commercial umbrella insurance depends on several factors, such as the size of the business, the industry, and the amount of coverage needed. In general, the cost of an umbrella policy is relatively low compared to the potential financial losses it can cover.
It is essential to work with an experienced insurance agent to determine the appropriate amount of coverage and ensure that the policy fits within your budget.
Protect Your Business with Commercial Umbrella Insurance from Isu Wissink Insurance!
At Isu Wissink Insurance, we understand businesses’ unique risks and can help you determine the right coverage to protect your business. Contact us today to learn more about our commercial umbrella insurance options. Protect your business and your peace of mind with us.