When you hear the term “commercial umbrella insurance,” what comes to mind? Many business owners aren’t entirely aware of what this type of coverage entails, or even what it means. Today, we are going to give you the answers to your most pressing questions on the topic!
What is commercial umbrella insurance?
Commercial umbrella insurance is a way of giving business owners added liability coverage when their basic policy limits are reached.
What does commercial umbrella insurance cover?
There are different types of business insurance policies that umbrella insurance can be used with.
- Commercial general liability (CGL) insurance
- Commercial auto insurance
- Other types of liability coverage not included in a CGL policy
How does commercial umbrella insurance work?
Let’s say your commercial auto insurance policy has a $75,000 limit. One of your drivers is involved in a multi-vehicle collision for which they’re at fault, and the damage totals more than $200,000 in damage. Because your business auto insurance caps out at $75,000, how will you cover the additional $125,000?
If you have a commercial umbrella insurance policy, this can be used to go toward this gap in coverage once your limits are reached.
Who needs a commercial umbrella insurance policy?
Most small businesses can benefit from a commercial umbrella insurance policy. This can depend on the specific risks your business faces, how high your existing coverage limits are, and many other factors.
A business that regularly faces public exposure is more likely to experience costly third-party liability claims. In that case, a commercial umbrella insurance policy is a wise choice.
Commercial umbrella insurance policies often cost business owners less than $1000 per year, and with that comes a great deal of peace of mind and protection.
If you’d like to learn more about what a commercial umbrella policy might look like or cost for your business, get in touch with an agent today.
Source: Fargo Moorhead