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Commercial Umbrella Insurance

Commercial Umbrella Insurance

Like regular umbrella insurance, commercial umbrella insurance gives you additional coverage to address expenses or costs that exceed liability policy limits in your current insurance.

Without access to this type of commercial insurance coverage, you may end up shouldering liability claims personally if they cost more than what your available coverage permits. Such costs that may arise include legal fees, damage to other people’s property, medical bills, and judgments and settlements.

To get the extra protection you need, consider purchasing commercial umbrella insurance.

Commercial Umbrella Insurance Basics

A commercial umbrella policy takes effect after your primary liability insurance policies (e.g., general liability insurance and commercial auto insurance) have already been exhausted. With commercial umbrella insurance, you are able to extend the liability coverage of policies you may already have.

For example, one of your employees gets involved in a car accident during their delivery rounds. If the property damage and bodily injury expenses exceed your business’s commercial auto liability limits, you would need to pay for those costs out of pocket. But with commercial umbrella coverage, your ability to cover the costs incurred during the accident is extended. Therefore, there’s no need to dip into your personal assets to address that particular sizeable expense.

Commercial Umbrella Policy Coverage

A commercial umbrella policy typically helps cover the following claims:

  • Bodily injury (customer or employee)
  • Property damage caused by your business to someone else’s possessions

However, remember that commercial umbrella insurance can only be had on top of your general liability policy. Without general liability insurance, you won’t be able to purchase commercial umbrella insurance.

Also, commercial umbrella insurance doesn’t provide cover for all types of claims and doesn’t extend the limits of specific policies, such as commercial property insurance.

Who Needs Commercial Umbrella Insurance?

If your business typically involves personal interactions with clients and customers, working in a rented space or offsite, or allowing public access to your business premises during business hours, your liability risk becomes higher. This risk can also increase further if your employees operate heavy machinery or dangerous equipment.

After studying your business and establishing that the cost of a claim could exceed your liability limits, you may consider buying commercial umbrella insurance.

Want to Know More About Commercial Umbrella Insurance?

At Crescenta Valley Insurance, we help businesses make informed decisions when it comes to business insurance, including commercial umbrella insurance.

Not sure if you need it?

Call today at 818-248-4500 to find out.