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What You Need to Know About Commercial Umbrella Insurance

5 May by 5280 Insurance

It’s seldom simple to foresee when anything bad may happen to your company. That doesn’t mean you can’t go above and above to safeguard yourself and your organization if the unexpected happens.

This is where commercial umbrella insurance might come in handy. If you’ve been considering adding an extra layer of security to your current liability insurance coverage, commercial umbrella insurance might be a good choice to consider.

What is Commercial Umbrella Insurance?

Commercial umbrella insurance provides additional coverage to help pay for expenditures that exceed the limitations of your liability policy. Without this form of business insurance coverage, you’d have to pay for liability claims that exceed your policy limits out of pocket. This can include things like:

  • Legal fees
  • Medical expenses
  • Other people’s property has been damaged as a result of your actions.
  • Settlements and judgments

What Is Covered by Commercial Umbrella Insurance?

Business umbrella insurance assists in the payment of liability claims that exceed the limits of an underlying insurance policy, such as general liability or commercial car insurance coverage.

Legal fees, medical bills, damage to someone else’s property, and court judgments and settlements would all be covered by a commercial umbrella insurance policy.

Commercial umbrella plans with aggregate limits ranging from $1 million to $15 million are written by insurance providers.

How Does a Commercial Umbrella Insurance Policy Work?

Assume one of your workers is involved in a car accident while delivering a delivery for the business. Your employee is at fault, and the expenses of the collision, including property and bodily injuries, exceed the liability limit on your commercial vehicle insurance policy. You would have to pay for those charges out of your business cash if you did not have a commercial umbrella insurance, putting your company at risk. Another alternative is to utilize personal funds, which puts your own financial security at risk. You wouldn’t have to employ either option if you had a business umbrella coverage. A commercial umbrella policy can cover liability expenses that exceed the limit of the primary liability coverage.

How to Choose the Right Commercial Umbrella Insurance

Take the time to investigate your alternatives and carefully examine the plans accessible to you before selecting umbrella coverage. Some business umbrella plans, for example, may exclude coverage for aircraft or watercraft.

If you have specific coverage or limit needs, ensure your umbrella policy meets them. Some plans exclude certain forms of liability coverage or may require you to carry a certain level of coverage. If you have any questions, don’t hesitate to get in touch with your insurance agent.

The expenses of paying for damages, medical bills, or litigation may quickly build up—having an umbrella insurance is one way to help protect your company from the unexpected.

Conclusion

Commercial umbrella insurance is one way to add more protection to your current insurance policy. There are many reasons why an additional multilayered layer of protection is a smart business decision, especially when it comes to the unexpected. If you’re concerned about the safety of your business and would like to learn more about commercial umbrella insurance, please contact us. We’d be happy to discuss your options with you.

At 5280 Insurance we’re committed to a local experience. That’s why when you call us, you’ll speak immediately with a real person. We don’t have automated systems. We don’t have long wait times. We don’t transfer you to multiple departments. Calling us is like calling a friend. We’re here for you, and we aren’t going anywhere. Get a commercial umbrella insurance quote from us today!

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