Commercial umbrella insurance helps pay for liability claims that exceed the limits of an underlying insurance policy, such as a general liability insurance policy or commercial auto insurance. Business umbrella insurance covers what other insurance policies do not. These include: General liability insurance protects your business against a range of claims, including bodily injury and property damage to customers. Other claims include copyright infringement, reputational damage, and publicity damage. A commercial umbrella policy may cover liability costs that exceed the limit of the primary liability policy. In this scenario, your commercial umbrella policy would cover the $500,000 shortfall. For example, your company will have to pay the extra amount if your employee makes deliveries and causes a car accident that results in multiple injuries and medical expenses exceed your commercial auto insurance liability limits. However, if you have commercial umbrella insurance, the policy will cover the deductible. Many factors contribute to the cost of commercial liability insurance, including the size of your business, the level of risk associated with your industry, and the number of policies you want to cover. The amount of coverage you want to allocate also the cost. Commercial umbrella insurance typically increases coverage in $1 million increments.
Therefore, a $1 million increase in coverage costs less than a $4 million increase in coverage. A commercial umbrella policy may be more cost-effective than increasing the limits of your other policies. The cost of paying for damages, medical expenses or lawsuits can add up – an umbrella policy is one way to protect your business from the unexpected. Claims not covered by the underlying policies. For example, commercial liability insurance probably only covers the equipment you own. If you rent other equipment and that equipment is damaged, your business will be liable for this damage unless you have a corporate umbrella cover. Developing a plan in advance can help businesses deal with unforeseen emergencies. The Travelers Indemnity Company and its property accident business. One Tower Square, Hartford, CT 06183 This document does not modify or otherwise affect the terms or coverages of insurance policies or bonds issued by travelers. There is no representation that there is or is no coverage for any particular claim or loss under any such policy or bond. Coverage depends on the facts and circumstances of the claim or loss, any applicable provision of the policy or bond and applicable law.
The availability of coverage mentioned herein may depend on underwriting qualifications and government regulations. All rights reserved. Travelers and the Travelers Umbrella logo are registered trademarks of The Travelers Indemnity Company in the United States and other countries. Corporate umbrella insurance extends your underlying coverage on a « tracking form » basis. You need to exhaust your underlying coverage before you can use the company`s roof covering. Even small businesses can have big liability risks, which is why Travelers A/B Umbrella is available as part of our wide range of small business solutions to help you grow and stay protected. You or your employees work on other people`s property. Working on other people`s property puts your business at increased risk.
Even accidental property damage can lead to costly lawsuits. For example, umbrella insurance does not cover property insurance claims, whether or not you have commercial property insurance. The same goes for errors and omissions (E&O) insurance. Umbrella insurance does not cover claims related to this type of policy. General liability insurance and commercial auto insurance are popular options for small businesses. And you can consider these additional liability insurance options: Directors and Officers Liability Insurance covers defense costs and damages for claims against an officer or director of the corporation. Deciding how much additional liability coverage you need depends on several factors, and an experienced independent insurance agent can help you decide what you need. Let`s break down a hypothetical scenario to illustrate where an umbrella insurance policy would fit into your risk management plan: Your business is at high risk of lawsuit.
Unfortunately, this describes most companies. The only businesses that are unlikely to need umbrella insurance are sole proprietorships without employees, contractors, and direct customer contact. Even if it describes your business, weigh the risk of being named in a lawsuit before deciding to pass on this additional protection. Commercial umbrella insurance provides an extra layer of liability protection for your business. As soon as a claim reaches the liability limit of an underlying insurance policy – such as commercial general liability insurance – a commercial umbrella insurance policy with additional liability protection comes into play. Criminal activities. Fines or prosecutions resulting from your violation of the law or that of other members of your company are not covered by Commercial Shield insurance. When unexpected accidents happen, you need to be protected. Not being prepared with coverage that covers medical and legal expenses can be disastrous. Most growing companies may not have the capital to recover from a scathing lawsuit without being covered.
Excess insurance can provide additional liability insurance for one of your underlying liability insurances. As with commercial umbrella insurance, excess insurance occurs when an underlying insurance policy has reached its limits of liability and provides additional liability protection. Embroker helps you get the right umbrella insurance to sit on other insurance policies. If the limits of the underlying insurance policy are exhausted, this policy acts as an additional liability protection. Other scenarios include a store where you work on someone else`s property, or a store that allows the public to visit during working hours. If people can visit your business during the day, it increases the risk of bodily injury. Working outside someone else`s property can cause property damage. Both are good reasons to get additional liability protection with commercial umbrella insurance.
In case you need an extra layer of protection beyond what primary insurance can cover, Travelers offers a deductible to protect your business from potential disasters. While umbrella insurance can protect you in the event that a liability claim exceeds your primary insurance coverage, it does not exempt you from all legal risks. Master policies typically cover liabilities arising from business activities and business ownership covered by your primary policies. Things like uninsured motorists, flood damage, and some cases of property damage may not be covered, so it`s important to discuss with your insurance agent what`s covered and what`s not when choosing an umbrella policy. Before exploring umbrella insurance, it`s important to remember that you`ll need the underlying coverage first. That said, if you want a higher policy limit for your commercial auto insurance, you must already have that type of policy. Generally, a good rule of thumb is that you can`t get an umbrella policy for one type of coverage if you don`t have that policy at all. Claims that go beyond the limits of your underlying policies.