Business insurance is key to protecting your company, employees, and assets if an unforeseen circumstance occurs. However, around 75% of small businesses don’t carry enough insurance to safeguard themselves. Being underinsured puts your business at risk of financial ruin when faced with a lawsuit or disaster.
This blog will discuss why you need to invest in a commercial umbrella insurance policy. Learn more about how this type of insurance adds an additional layer of coverage on top of your current policies.
What Is a Commercial Umbrella Insurance Policy?
A commercial umbrella insurance policy gives you an extra layer of coverage that goes beyond your current liability coverage limits. It takes over when you meet the coverage limits on your insurance policy. This insurance might also protect your company in situations where your other policies won’t.
Your umbrella insurance policy will kick in after you meet the policy limit for the following kinds of coverage:
- Commercial auto insurance
- General liability insurance
- Employer’s liability insurance
The goal of this type of policy is to increase how much liability insurance your company has.
What Does It Cover?
There are four main coverages included in an umbrella liability insurance policy. These include the following:
- Property damage
- Bodily injury
- Personal injury
- Advertising injury
What Doesn’t It Cover?
While umbrella liability insurance encompasses a lot, there are some claims it doesn’t cover. These claims can include:
- Medical malpractice insurance
- Commercial crime insurance
- Commercial property insurance
- Professional liability insurance
It’s important to review these types of policies (if you carry them) to ensure they’re giving you the coverage you need.
How Big of a Policy Do I Need?
The amount of umbrella liability insurance your company needs depends on various factors. These elements can include:
- Your liabilities
- Business size
- Contractual obligations with your clients
For example, you might have a contract with a client that requires you to carry $3 million in general liability coverage. You can buy a $2 million policy with a $1 umbrella policy to meet your contractual obligation.
Most umbrella insurance policies come in $1 million increments. A licensed insurance agent can better inform you on how much you should purchase.
Why Should I Get Commercial Umbrella Insurance?
There are numerous reasons why a business should purchase this type of policy, in addition to providing you with more liability coverage. Some of the other ones include:
- Lowering the risk of lawsuits of accidents at your physical location
- Provide you with coverage if you or your employees are on the road a lot
- Your workplace has hazardous conditions that might result in injury
- Reduce your liability in a cost-effective way
Retail businesses, auto service companies, real estate professionals, and other types of organizations can greatly benefit from this type of insurance.
Get a Free Quote for Commercial Umbrella Insurance
Commercial umbrella insurance is a great way to ensure every aspect of your business is covered. Don’t let a lawsuit or unfortunate event derail your company. Keep yourself protected by investing in comprehensive insurance policies.
RBP Insurance is here to keep your organization protected. Reach out to our office to request a free quote for commercial insurance. Our office will go over your needs and provide you with a tailored insurance estimate.