A commercial umbrella insurance policy adds more coverage to any existing liability policies you have. It covers liability claims that go above your coverage limits. It’s additional liability protection.
What is Umbrella Insurance for Business?
This umbrella coverage covers small businesses the same way business liability insurance does. It covers costs like legal expenses, medical bills on injury claims…etc.
Commercial umbrella insurance isn’t a stand-alone product. It works with other liability coverage policies. Like general liability insurance.
Read More: Types of Business Insurance
Does My Business Need an Umbrella Policy?
Business needs an umbrella policy for additional coverage.
- If the public goes on your commercial property.
- If anyone you employ works on other people’s property.
- If a government contract requires umbrella coverage, most do.
If your business might get sued. In other words, most can use this additional layer to cover the financial risk from lawsuits.
Why You Should Have Umbrella Insurance
Commercial umbrella insurance covers what other policies miss.
Here are five other reasons why you need this extra liability coverage.
- Got lots of foot traffic? This covers liability risk.
- Got lots of vehicles? An umbrella policy offers auto insurance.
- Use dangerous equipment? Umbrella policies cover employees’ severe injury claims, it is great for construction businesses.
- Need to land a big contract? Extra coverage through an umbrella insurance policy helps satisfy bigger clients.
- Is a lawsuit escalating? An umbrella insurance policy steps in when you exceed your coverage limits.
What is Covered by Business Umbrella Insurance?
A commercial umbrella policy needs to be comprehensive. Look through these different types of business insurance for reference.
Read More: Business Insurance Benefits
A business should check to be sure it has the following:
Liability Coverage
Get commercial umbrella insurance cover for legal issues that crop up. These insurance policies handle liability claims for property damages or injuries. Umbrella policies expand the liability limits offered with a general liability policy.
Global Coverage
This is the kind of liability coverage a small business needs when it works online. When a business interacts with global customers, an existing underlying policy might not be enough.
A commercial umbrella policy can fill the gaps. If you can’t get this kind of liability protection where you are, other insurance companies might have it. Ask around to avoid worst-case scenarios.
Property Damage
One of the other options is to add financial protection. A policy that covers business equipment or other items your business owns. An umbrella insurance policy here is divided into loss of use or bodily injury categories.
Medical Expenses
An expansion of your other liability insurance policy covers medical expenses if your small business is up against a bodily injury claim.
Those are a few of the boxes to check when you’re looking at commercial umbrella insurance options. Ask the insurance company you’re thinking of what you’ll need specifically.
What is Business Umbrella Insurance, and Do You Need it? [Smallbiztrends]
