Why does my business need Commercial Umbrella Insurance?
Your standard business liability policies, such as your General Liability or Commercial Auto insurance policies, will cover you in most situations. However, when very serious incidents happen that result in
heavy property damage, serious injuries or even deaths, the limits of standard business liability policies are often not enough to cover all the claims against you and your business. Commercial umbrella insurance
will help ensure that you and your business are protected in these extraordinary situations by providing coverage above the limits of your standard liability policies.
Since umbrella insurance can add
additional protection to several liability policies at once, it is often less expensive than raising the limits on each policy separately.
How does Commercial Umbrella Insurance Work?
A commercial umbrella policy expands the claim limits that your business already has with its existing or underlying liability policies (such as general liability and commercial auto liability) by picking up
coverage where these primary liability coverages stop. For example, if your current business liability policy covers you for $1 million and you are successfully sued for $1.5 million, your commercial umbrella
insurance coverage can pay the outstanding $500,000.
Commercial umbrella insurance also broadens coverage for incidents that your standard business liability policies may not cover. For example, if your
commercial auto liability insurance covers accidents only when driving in a specific area, and your company's driver has an accident outside the specified area, umbrella insurance could expand the coverage area.
All Businesses are not alike!
A Commercial umbrella
policy can be customized to fit the needs of your particular business or to expand the limits of a particular type of liability insurance policy. To determine what Umbrella Insurance policy is best for your
business, contact an Alliance Insurance Agency Commercial Insurance Specialist for a free consultation and evaluation of your specific coverage needs.