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Umbrella Insurance Policies

People buy insurance—homeowners, auto, boat, etc.—to protect their family and assets. Adding personal umbrella insurance provides extra liability coverage if they reach the limits of their standard policy.  

While it can be unpleasant to think about liability claims, lawsuits, and judgments, you might face one of these, all of which have the potential to devastate your finances. If you have taken steps in advance in the form of an umbrella insurance policy, it could save your financial life.

And if you own a business, a commercial umbrella insurance policy is indispensable. Here is why you need to consider making a business umbrella a top priority:

What Is commercial umbrella insurance?

The unpredictability of life is typically magnified for the business owner. So, it is even more necessary to protect your company if the unexpected threatens to hurt or destroy it. Commercial umbrella insurance can help by augmenting your existing liability insurance coverage with another layer of protection.

Without a business umbrella policy, you would end up paying out-of-pocket for any claims that exceed your coverage limits. These costs could include:

  • Legal expenses
  • Medical bills
  • Damage to someone else’s property
  • Judgments and settlements

How does commercial umbrella insurance work?

As mentioned earlier, a commercial umbrella policy expands the limits of some of your primary liability insurance policies. Specifically, a business umbrella policy will supplement the coverage provided by:

  • General liability insurance
  • Employer’s liability insurance 
  • Commercial auto insurance or hired and non-owned auto insurance

Keep in mind that you will need to carry a specific amount of coverage for the underlying policy before you can buy business umbrella coverage. For example, if a project required a general liability policy with a $5 million limit, you would add a commercial umbrella policy of $3 million to the existing $2 million general liability policy.

Commercial umbrella insurance protects your business from various liability claims, including customer injuries, vehicular accidents, product liability, libel, and reputational damage. The business umbrella coverage extends your general liability, commercial auto, or workers compensation insurance.

It also provides extra coverage help for excess claims on hired commercial auto insurance, meaning that it will cover damages caused by cars that your business is using but does not own.

Which types of businesses need a commercial umbrella policy the most?

In the past, only large corporations bought commercial umbrella insurance coverage. Today, however, smaller businesses are investing in it because lawsuit costs have been escalating. While a commercial umbrella policy can make sense for practically any company, it is especially critical under the following circumstances:

  • Your company has a good deal of contact with the public. Lots of foot traffic increases a business’s liability risks.
  • Your business owns numerous vehicles and wants extra coverage to protect against the cumulative costs of vehicle accidents.
  • You win a large project and the client who requires more liability insurance. Commercial umbrella insurance is ideal for contract requirements over $2 million.
  • You do hazardous work, such as construction. And with it comes a higher risk of injured workers. By adding a business umbrella policy to the underlying liability coverage, you can protect the business against employees claiming their injury was caused by your negligence.

How much does $1 million of commercial umbrella insurance cost?

Certain factors will determine the cost of umbrella insurance. Suppose your employees work in an office and have little contact with the public. In that case, your company’s premiums will be much lower than if your workers operate dangerous equipment of heavy machinery.

For example, building design professionals pay an average of $1,600 annually for a business umbrella policy, while personal care professionals pay a more modest premium of $480 per year. Construction and landscaping businesses are in the middle at a little over $900 a year.

Get in touch with the experts for your umbrella insurance coverage

The insurance professionals at White Cloud Insurance want to help you protect your personal or commercial property, and they can help you determine how much umbrella coverage you need.

Use our convenient contact form, call us at 305-556-1488, or send us a message at At White Cloude Insurance, you are always our priority.