There are many types of commercial insurance policies that protect against everything from liability to worker’s compensation. Not every type of policy is recommended for every business, but many companies, based on their industry, choose to have some type of liability insurance. Some need even more, and that’s where commercial umbrella insurance comes into play.
Do You Need Commercial Umbrella Insurance?
Not every business requires commercial umbrella insurance. It’s a type of business insurance that acts as an extension of your normal insurance plan. It can help cover you in the event you face a lawsuit that requires you to pay out more than your standard liability insurance plan will cover, and it can also fill some gaps in other areas of insurance that leave you unprotected.
Like many types of insurance, you only need it when you need it, but not having insurance leaves you vulnerable in the event you need to pay out (due to a liability or other case that involves your business). In the end, whether you need an umbrella insurance plan on top of your commercial insurance comes down to the risks your business faces.
It’s generally a good idea for businesses who are vulnerable to large catastrophic loses to obtain a commercial umbrella policy. If you work with customers on projects where these types of losses are possible, and your regular commercial insurance won’t cover the full amount of a potential loss, an umbrella policy is ideal for your business.
What Commercial Umbrella Insurance Covers
Commercial umbrella insurance can cover a variety of things that extend beyond your everyday insurance plans. These can include:
- Liability claims
- Legal costs
- Medical costs and bodily injury
- Judgements made against you
- Court settlements
- Damage to someone else’s property
Commercial umbrella insurance generally does not provide extensions to commercial property insurance (which protects the property you own).
How to Add a Commercial Umbrella Policy
If you know the limits of your regular insurance policy, and the amount that you could be liable for that extends beyond those limits, you have most of what you need to obtain a commercial umbrella policy. Many insurance companies provide this type of policy. At The Patrick J. Thomas Agency, we specialize in commercial umbrella policy that supplements the initial policies you already own. Get in touch with one of our agents today to talk about how to get your business the extra protection it needs.
Disclaimer: this is for informational purposes only and is not intended to be legal advice. If you need legal counsel, please contact an attorney directly.