Owning and operating a business means that you’re responsible for dozens of decisions, including hiring employees, choosing an office location, and getting the right kind of commercial insurance. While you may have other types of business insurance in order to protect your business and its assets, you may not have as much coverage as you need. Most insurance policies have a limit and some unforeseen circumstances can cause you to go over these limits. By obtaining commercial umbrella insurance coverage, you are giving your business the best chance at sustainability following an unanticipated loss.
Commercial Umbrella Insurance Coverage
Commercial umbrella insurance is a unique type of liability insurance policy that steps in when you go over limits of your other commercial insurance policies. It acts as an extension of traditional business insurance so that if something unexpected occurs and the damages exceed what your other insurance policies cover, umbrella insurance will make up the difference. Commercial umbrella insurance typically has significantly higher limits of coverage than other types of commercial liability insurance in order to provide you with this needed coverage beyond your primary policies.
Bodily injury liability is often covered under a commercial umbrella policy, which will help pay for medical bills and legal costs when your general liability insurance policy, commercial auto liability, or employers liability policy meets its limits.
Benefits of Commercial Umbrella Insurance Coverage
You’ll find a multitude of benefits in obtaining a commercial umbrella liability insurance policy. The main advantage is that you have the opportunity to save your business from bankruptcy if an unforeseen event causes damage that won’t be covered by your main commercial business insurance policies. This will give you peace of mind and help you feel comfortable knowing that if something were to happen, you would be covered. It also helps to cover risk exposures that typically have a low limit of coverage by other insurance policies, such as a commercial auto insurance policy.
While you can’t avoid these catastrophic events, you can protect your business assets by purchasing a commercial umbrella insurance policy. You won’t have to worry about keeping your business afloat if something happens that costs extraordinary fees to repair as umbrella insurance helps you to cover these costs.