How Does Commercial Umbrella Insurance Work?

​Umbrella insurance protects your business from devastating lawsuits. While commercial umbrella policy does not cover all policies and claims, it is immensely beneficial to certain policies and claims when supplemented with the coverage. 

There are some things to consider before you purchase an umbrella policy for your business:

Coverages
When a claim that is covered under your liability policy goes beyond the limits, you can use commercial umbrella insurance. For example, your policy has used $1 million to pay for a claim, and your policy can offer only that coverage. But, in case you are still legally responsible for another $75,000, your umbrella policy can help pay for the remaining cost. 

Keep in mind that you cannot apply your umbrella coverage to all types of commercial policies. It functions like your real umbrella, which only covers you for a certain area. This kind of protection typically covers these underlying liability policies:

• Employer’s liability insurance
• General liability insurance
• Non-owned and hired auto liability insurance

The commercial umbrella coverage you need depends on your business operation. If you are running a brewery company, consider buying an umbrella policy that comes with liquor liability coverage. If you own a boat firm and like entertaining guests, you may choose an umbrella that offers watercraft liability coverage.

The premiums for your commercial umbrella insurance depend on the limits and coverages you choose. Your insurance carrier also determines your umbrella premiums.

Variation
The insurance company is another factor that determines the scope of coverage a commercial umbrella policy has. Make sure to look around and do a comparison of the policies. You can ask your insurer from your general liability policy to give you a quote, which you can use for comparison. If your general liability insurance company does not have an umbrella coverage, look for alternative policy carriers.  

Policy Period
The date of your commercial umbrella policy usually has the same duration as your basic insurance policy. The dates of your policies are vital considering that many umbrella coverages have limits to damage or injuries that transpire during the umbrella policy period. When you have policy dates that do not match, problems may spring up.

Ask your insurance agent questions regarding commercial umbrella policy and don’t forget to discuss cost.

At Gary Bacon Insurance, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (252) 644-3353. Get your free quote today by CLICKING HERE.