When It’s Time to Get a Commercial Umbrella Policy
A commercial umbrella policy can help you protect your company from potential financial risks with high liability. Some businesses may risk high-risk liability exposure, and you may run one. Therefore, you may need further liability protection across multiple insurance policies. Now is the best time to consider investing in a Commercial Umbrella Policy. In this article, we’ll explore when you need Commercial Umbrella Insurance Policy, how it works, and how much it costs to purchase one for your business.
How Does Commercial Umbrella Policy Work?
Commercial Umbrella Insurance is a policy that extends the liability protection provided by your other insurance policies. If someone brings a significant claim or lawsuit against you that exceeds your policies, you have a safety net that will cover the additional costs.
Umbrella insurance can help offer individual coverage for medical bills, legal costs, third-party property damage, and judgments and settlements.
Who Needs Commercial Umbrella Insurance?
In the past, umbrella insurance was a policy only large businesses get. Still, nowadays, the escalating costs of legal disputes prompt an increasing number of small businesses to opt for coverage.
You might consider purchasing coverage based on the following.
Frequent Interactions with the Public
The more visitors your establishment receives, the greater the chances of accidents and injuries that could result in a lawsuit.
For instance, if a customer sustains injuries from tripping on an uneven step at your clothing store, they may file a lawsuit for up to $3 million. If your shop’s general liability policy has a per-occurrence limit of $2 million, the commercial umbrella policy will cover the remaining $1 million.
Your Business is High-Risk
Certain industries or businesses, such as construction, mining, and manufacturing, are considered high-risk. Getting a commercial umbrella policy is necessary if you operate in one of these industries. It will help guard against expensive employee claims and provide coverage for any settlement that exceeds policy limits.
Your Company Owns Vehicles
If your business owns a fleet of vehicles, it is beneficial to get commercial umbrella insurance to shield your business against the collective expenses of minor vehicle accidents.
For instance, if a mechanic driving the company car accidentally hits another vehicle, the affected driver could file a lawsuit. And in such a case, an umbrella liability policy can cover the business’s legal expenses beyond the limit of its auto policy and offer coverage for any damages paid to other drivers, either as a settlement or court-mandated judgment.
How Much Does a Commercial Umbrella Insurance Cost?
For a $1 million commercial umbrella insurance coverage, the cost can swing between a few hundred dollars to several thousand dollars annually. Some of these factors can include your industry, the size of your business, and the amount of protection you need. Likewise, other determinants include the risks in your business, your location, the coverage limits of your policies, and the number of vehicles your business insures.
For an accurate cost estimate, seek a quote from an agent or broker familiar with your business’s specific insurance requirements.
About Daniels Insurance, Inc.
At Daniels Insurance, Inc., we have a unique understanding of the risks that businesses like yours face on a regular basis. With the backing of our comprehensive coverages and our dedication to customer service and quick claims resolution, your business will be fully protected. For more information, contact us today at (855) 565-7616.