Commercial Umbrella insurance is designed to protect the business from larger and catastrophic claims. If proper Commercial Umbrella policy purchased, it should extend the coverage above your primary Business policies and may also provide protection for gaps in coverages you may have with your underlying Business policies, such as Business Owner’s, General Liability, Commercial Auto and other business liability coverages.
There are 2 main purposes of Commercial Umbrella policy:
- To extend the liability protection above your primary underlying Business Liability insurance policies.
- To broaden the protection in the areas your primary business coverage does not offer or may not offer enough of protection.
True Umbrella policies should serve both purposes.
Some insurance companies came up with a cheaper, more limited “Umbrella” policies, which are not true Umbrella policies, because their main purpose is to only extend the liability protection above the primary Business policies. This type of Umbrella policy looks like an Umbrella policy, but is not a true Umbrella policy. It is called Excess Liability insurance policy. It is typically less expensive, because its coverage is not as broad.
It’s important for businesses to purchase the proper Umbrella that fits their business needs. For example, a body shop may require an Umbrella that extends the garage or bailee liability, while a restaurant may need an Umbrella that will extend the liquor liability in addition to general liability coverage.
If you are looking for a Commercial Umbrella policy or an Excess Liability insurance, contact one of our agents for a free quote or a consultation today!