Did you know that small businesses make up 99.7% of all businesses in the U.S.? Are you currently a business owner looking to protect your business and yourself in case of emergencies?
In this article, you’ll learn what commercial umbrella liability insurance is and why it’s so vital. Read on to discover all the key benefits of this insurance so you’re not left behind drowning in business expenses.
Commercial Umbrella Liability Insurance Definition
You’ve worked hard for your business to be successful, don’t let an unexpected event make you fall into debt for your business. Commercial umbrella liability insurance is extra liability coverage for costs that go over your other liability limits. You’d wind up paying more for unexpected costs such as medical bills, damage, or legal fees.
What Does a Commercial Umbrella Policy Cover?
A commercial umbrella policy gives you extra coverage for your liability coverage limits. Speak with your insurance agent about what liability policies will be extended and which won’t. Some examples of coverage are attorney fees, damages if your company faces a lawsuit, or medical expenses.
Your business and employees are covered by commercial umbrella insurance. This can include commercial auto, workers’ compensation, and general liability.
Business Umbrella Insurance Cost
A good example of the cost is, say you have $1 million in coverage, this can actually cost as little as a few hundred dollars a year. It’s important to remember it works along with your other liability coverages and not alone.
How Does Umbrella Insurance Work?
If your business has reached its limit on other insurance policies, that’s when commercial umbrella liability comes in. When you’ve reached the limit, you make a claim for your umbrella policy to receive additional coverage.
One example is, say an employee is injured on the job and the court awards them $1.3 million for damages, but your general liability is only up to $1 million, that’s when umbrella coverage comes in.
Instead of suffering from that huge financial loss, you’re able to make a claim to your umbrella policy for the extra coverage. It can offer you so much more coverage than your general liability can on its own.
Who Should Get Commercial Umbrella Insurance?
If you have a business with a liability plan, a commercial umbrella liability policy can be beneficial.
Some great examples are:
You have your employees use your car to do business errands. If they wind up in a car accident, your business could be sued for damages. If you have employees, they could always be injured on the job and then sue you. If your property works with the public, this increases the potential of a general liability lawsuit.
Understanding Commercial Umbrella Liability Insurance
You have enough to worry about from day to day for your business, so why not protect yourself by investing in commercial umbrella liability insurance?
Are you ready to protect your business and receive a quote for this beneficial and important liability insurance? Get a quote today for a worry-free tomorrow.
