A commercial umbrella insurance policy is one of the least understood insurance policies in the industry. But with the world being “sue-happy” having a commercial umbrella could save your business assets in an unforeseen storm.
It doesn’t matter if you own an auto body shop or a condo building; a slip or fall on your property could send a lawsuit into the millions.
In the insurance world a commercial umbrella starts at one million and can go as high as ten million. So, let’s say you own a condo building and there is a cable repairman that is servicing one of your unit owners cable. He is walking up a flight of back step that you didn’t know had some water on them. He slips and falls breaking his leg, racking up $1,600,000 in medical bills. Your condo building has a general liability policy with a one million liability limit and one million umbrella policy that covered the extra $600,000 of the bills.
Reasons to purchase an umbrella insurance policy for your business:
- It is more effective to get an umbrella policy than to raise your limits on your existing general liability and auto liability policies.
- Under one umbrella policy, you can expand the coverage on several policies.
- Umbrella insurance coverage gives you the extra help for covering certain kinds of claims that might not be covered by your liability policies.
- If your business dals with high-net-worth individuals, an umbrella insurance policy is useful for coverage on a higher lawsuit settlement.
- Umbrella insurance will give you an overall peace of mind that you have plenty of coverage across all your insurance policies.
In addition to covering settlement costs, a commercial umbrella insurance policy will cover legal expenses. As any business over knows, legal expenses in and of themselves can be significant. It is important to have coverage for this as well, so your business stability is not threatened.
Give us or current agent a call to see if your limits are where they should be.