Commercial Umbrella Policy
Commercial Umbrella Insurance protects your business from the financial risk of large lawsuits against your company. It is a form of liability insurance that provides additional coverage which fills in the gaps between existing policies and takes over when the coverage of your existing policies deplete. Hence, the umbrella policy provides coverage which does not offer affordable basic liability policy. In other words, this insurance provides businesses with added liability coverage when claims exceed the limits of certain primary insurance policies. Such as general liability or commercial auto. Moreover, Commercial Umbrella policy helps to supplement existing insurance policies. The coverage your company needs to depend on the type of business you operate.
How Does a Commercial Umbrella Policy Work?
Commercial Umbrella Policy
In order to purchase umbrella insurance, it requires your business to purchase primary liability insurance policies such as general liability and auto liability. If your business is found liable for a loss, your primary insurance will pay up to the coverage limits on the primary policy. Then, commercial umbrella insurance pays claims that exceed coverage liability limits from your primary insurance policy. This insurance is a policy that increases coverage limits over other policies. And is only used if necessary. Moreover, once you have a commercial umbrella policy. It covers all eligible underlying policies. Remember, without a Commercial Umbrella policy. Your business may find itself on the hook for the large excess costs above your underlying policy limits.
What Commercial Umbrella Insurance Covers?
Commercial Umbrella Insurance should provides coverage which does not offer affordable basic liability policy. Hence, having an umbrella is the most cost-effective way to get higher liability coverage on multiple policies. Moreover, commercial Umbrella Insurance will usually specify the underlying policies that it covers. These policies may include:
Employers Liability Insurance
It can pay compensation costs and legal fees if an employee sues for disease, fatality. Or injury resulting from workplace conditions or practices. Furthermore, commercial umbrella insurance extends coverage to help cover not just claims exceeding coverage. But also lawsuit defenses arising from workers’ compensation claims.
Commercial Auto Insurance
Commercial auto insurance provides financial protection for business vehicles and its drivers. Hence, it pays for claims arising from accidents involving vehicles used by your business. Moreover, a commercial umbrella policy provides additional protection to the liability portion of the commercial auto policy.
Commercial General Liability (CGL)
Protects your business from a financial loss against liability claims for bodily injury, personal injury and property damage caused by the business operations, products or injury that occurs on the business premises. Moreover, commercial umbrella insurance adds coverage to these liability limits.