What is a commercial umbrella policy?
A commercial umbrella policy is a type of insurance that provides additional liability coverage for businesses. It acts as a "safety net" for businesses, providing extra protection in the event of a lawsuit or other liability claim. When a business is sued for damages, the commercial umbrella policy kicks in after the limits of the primary liability policy have been reached.
What is an example of a commercial umbrella policy?
If a business has a primary liability policy with a limit of $1 million and is sued for $1.5 million in damages, the commercial umbrella policy will cover the remaining $500,000. This can be incredibly valuable for businesses, as it can help protect them from financial ruin in the event of a large liability claim.
What are the benefits of a commercial umbrella policy?
One of the key benefits of a commercial umbrella policy is that it provides coverage for a wide range of potential liabilities. This can include things like injuries or property damage the business is liable for, as well as defamation or other types of defamation claims. Additionally, many commercial umbrella policies also provide coverage for things like liquor liability or professional liability, which can be incredibly important for businesses that have a lot of employees.
Can anyone purchase a commercial umbrella policy?
In order to qualify for a commercial umbrella policy, a business typically needs to have a certain level of primary liability coverage. This can vary depending on the insurance company, but generally, businesses need to have at least $1 million in primary liability coverage in order to qualify. Additionally, businesses may need to have certain safety measures in place, such as proper training for employees or safety equipment, in order to qualify for a commercial umbrella policy.
Are commercial umbrella policies affordable?
It's important to note that commercial umbrella policies have been increasing in cost over the past few years. The cost of the policy will depend on a number of factors, including the size of the business, the type of business, and the level of coverage needed. However, for many businesses, the added protection provided by a commercial umbrella policy is well worth the added cost.
One of the most important things for a business owner to do is to work with a trusted insurance agent to determine the best type of insurance for their business. A commercial umbrella policy can be an excellent choice for many businesses, but it's not right for everyone. By working with an insurance agent, business owners can determine whether a commercial umbrella policy is the right choice for them and get a sense of the costs involved.
In conclusion, a commercial umbrella policy is a form of insurance that provides additional liability coverage for businesses that are not covered by their primary liability policy. It acts as a "safety net" and provides extra protection in the event of a lawsuit or other liability claim. This can be incredibly valuable for businesses, as it can help protect them from financial ruin in the event of a large liability claim. The policy can be customized to meet the specific needs of a business and can be a great option for businesses that have a lot of employees. However, it's important for business owners to work with a trusted insurance agent to determine if a commercial umbrella policy is the right choice for them, and weigh the costs of the policy against the added protection provided.
Interested in getting a commercial umbrella quote for your business? Contact our team or Luke today!
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LUKE HOERR IS AN INSURANCE AVISOR LOCATED IN WASHINGTON, IL. HE SPECIALIZES IN BOTH PERSONAL AND COMMERCIAL INSURANCE. LUKE TAKES A HANDS ON APPROACH WITH HIS CUSTOMERS AND WANTS TO EDUCATE EACH INDIVIDUAL ON WHAT THEY ARE PURCHASING SO THAT HE KNOWS THEY ARE PROPERLY COVERED. CONTACT LUKE AT 309-481-3145 OR LHOERR@TROXELLINS.COM
This information is advisory only. The author assumes no responsibility for management or control of loss control activities. Not all exposures are identified in this article. Contact your local TROXELL insurance agent for coverage advice and policy service. Neither TROXELL nor its affiliates or representatives offer legal advice. Consult with your attorney about your specific situation.