What is a Commercial Umbrella?

Business owners face a lot of risks, but a commercial umbrella policy can protect them. It’s a form of extra liability insurance that covers the costs that surpass the limits of other insurance policies. It’s an “umbrella” policy because it offers broad coverage over a company’s primary policies, including general liability, employer liability, and car insurance.

For example, imagine that you own a retail store, and a customer slips on a wet spot on the floor. You have a general liability policy that covers up to $1 million in damages. But the customer’s lawyers are suing you for $2 million. Without a commercial umbrella policy, you could be on the hook for the remaining $1 million that your insurance won’t cover. However, if you have a commercial umbrella policy worth $2 million, it will kick in, and the additional cost will be covered.

Commercial umbrella policies are affordable and flexible. For most companies, it’s a small price to pay for the extra protection it provides.

A commercial umbrella policy is a wise investment for any business owner. It saves you money in the long run if you face lawsuits and other financial damage. With its broad coverage and flexible pricing, it’s an essential part of any business’s risk management strategy.