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Does My Business Need a Commercial Umbrella Policy?

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Also called excess liability, a commercial umbrella insurance policy can give additional coverage to several smaller policies in place for your business. Generally, those policies may be your general liability policy, your employer's liability, and hired and non-owned motor vehicle policies.

If you have one million dollars in General Liability coverage, then you can add an umbrella policy to maximize protecting your business assets.

As an example, a covered claim against you is rewarded 1.4 million dollars. You have 1 million dollars in general liability coverage, and your umbrella policy kicks in an additional four hundred thousand dollars to settle the claim.

A commercial liability policy is certainly a way by which to increase coverage of several policies while keeping your overall premiums down.

One key point to remember is a commercial umbrella insurance, or excess liability policy, will not protect either errors and omissions or a professional liability policy.

How much insurance coverage does your business need? A number of factors come into play in determining the appropriate excess liability coverage. This includes the type of business you own, the coverages your business already has in place, as well as the assets of the business.

Standard coverages will generally take care of most situations your business will encounter. However, in extreme situations, it is important to protect the assets and general well-being of your business.

Talk to your licensed commercial insurance agent to get the proper analysis of your current business coverage. Overall, excess liability, also known as a commercial umbrella policy, could be the key to preserving your company in the event of a serious claim against your business.