What Is Commercial Umbrella Insurance?

Commercial umbrella insurance provides additional protection to cover claims that surpass the limits of specific liability policies. Without this coverage, businesses would be responsible for paying costs exceeding their policy limits, including legal fees, medical expenses, property damage, and settlements.

How Does Commercial Umbrella Insurance Work?

Commercial umbrella insurance extends the liability coverage of certain policies, such as general liability insurance and commercial auto insurance. It supplements existing coverage and can be flexible, extending the limits of policies from other insurers. Unlike excess liability insurance, which extends the limits of one specific policy, commercial umbrella insurance broadens protection across various policies.

What Does a Commercial Umbrella Policy Cover?

A commercial umbrella policy can cover bodily injury, property damage caused by the business, and lawsuits from customers or employees with work-related injuries or illnesses. It adds an extra layer of protection to an underlying policy but does not provide coverage if the underlying policy is absent.

Business Umbrella Insurance Limits

Commercial umbrella insurance policies come with aggregate limits, typically ranging from $1 million to $15 million. This represents the maximum amount the insurer will cover for claims made during the policy period.

What Is Not Covered by a Business Umbrella Policy?

Commercial umbrella insurance does not extend coverage to all liability claims and excludes certain policies like commercial property insurance. It does not cover claims exceeding the limits of policies it does not supplement.

Who Should Purchase Commercial Umbrella Insurance?

Businesses with higher liability risks, particularly those frequently interacting with customers or using heavy machinery, should consider commercial umbrella insurance. It provides added protection if the cost of a claim exceeds existing liability limits, making it essential for businesses facing substantial liability risks.

How Much Does Commercial Umbrella Insurance Cost?

The cost of commercial umbrella insurance varies by state and depends on factors such as the amount of underlying coverage, limit amount, type, and size of the business. The best way to determine costs is by getting a quote tailored to your specific needs.

How To Get a Commercial Umbrella Quote

Getting a commercial umbrella insurance quote is easy and can be done online. Ensure you have copies of your current business liability insurance or commercial auto insurance policies, as you’ll need this information to obtain an accurate quote. With extensive experience, specialists at Affordable Coverage Insurance can help you find the appropriate coverage for your business.