Commercial Umbrella Insurance

No matter how much you put into safety and prevention at your company, accidents will always happen. There is no way to completely cover yourself and avoid risk with prevention alone. There are always going to be unexpected accidents and incidents that are completely out of your control. That is why you should take into consideration having Commercial Umbrella Insurance.

Commercial umbrella insurance provides an extra layer of liability protection by covering costs that go beyond your other liability coverage limits. In other words, commercial umbrella insurance complements your other liability coverages by taking over when your other liability coverage limits have been reached. Without this type of commercial insurance coverage, you’d have to pay out of pocket for costs that go over your policy limits.

This type of insurance can feasibly protect your company from any liability claim, including libel, reputational damage, vehicular accidents, product liability, or customer injury. Umbrella extends the underlying coverage, usually on a “follow form” basis; it’s going to pick up anything that won’t be covered by the underlying.

An umbrella policy can sit on top of general liability, commercial auto, or workers comp Insurance. It also provides an extra layer of coverage help for excess claims on hired commercial auto insurance. This means that umbrella insurance will cover damages caused by cars that your business is using but does not own.

Commercial Umbrella Insurance vs Excess Liability Insurance

Be aware that commercial umbrella insurance is different than excess liability insurance. Excess liability coverage extends the limits on one specific liability policy. Commercial umbrella insurance is a type of excess liability insurance that extends the limits of different policies, which gives the insured broader protection.

Let’s say one of your employees gets into an accident while making a delivery to a customer. They accidentally crash into someone else’s car, causing significant damage and injuries. The costs to repair the damages, in addition to the medical bills, exceed your business’ liability limits.

Excess liability coverage can help pay for the costs that exceed your commercial auto or general liability policy. Commercial umbrella insurance can help cover the costs exceeding the limits of both your commercial auto and general liability policy.

How Much Does It Cost?

As with any other type of insurance policy, umbrella insurance fluctuates in cost depending on the specifics of your policy. In particular, how much excess liability you decide to buy will be a major determining factor in how much you can expect to spend.

The amount of coverage you get is the primary factor in determining the cost of your policy, but also note that your industry may place a role. Insurance companies charge more for extra liability insurance in industries the deem to be high-risk, such as healthcare. Demand for coverage in these industries also tends to be higher that in lower-risk sectors, which can also help explain the higher coverage rates.

Construction companies, for example, usually pay very high premiums. This is because they are working on property that is owned by someone else, which greatly increases the risk of third-party liability claims. Obvioulsly, the bigger the construction company, the higher the cost of umbrella insurance will be. Therefore, it can be assumed that while your industry determines whether you will pay a lot for umbrella insurance, the actual size of your company and scope of your work is what drives the cost most.

Having Commercial Umbrella Insurance is the right risk management strategy for any business that is serious about success and staying afloat. It’s all about being ready for the unexpected and having a fail-safe in place in the form of insurance coverage that is going to protect you in these worst-case scenarios.

Still hesitant on getting Commercial Umbrella Insurance? Talk to ONYX Insurance Brokers, we will be very glad to serve and assist you. Contact of email us now!