Umbrella coverage is an extra layer of protection for your business. It can be added on top of your existing policy, such as commercial property, marine, and general liability, offering extended liability limits and comprehensive protection. But how does it relate to you and your current insurance policy? Here’s a basic overview to help you understand the coverage.
1. What is it?
Umbrella coverage provides higher limits to give you extra liability coverage to pay for injuries and damages others sustain due to your negligence. For example, an employee is found negligent in an auto accident and you are required to pay for the resulting bodily injury. Once you reach the limits of your primary insurance policy, the umbrella kicks in to cover the additional costs above that, up to your limit.
2. Who and what does it cover?
This coverage applies to you and key individuals within your business environment, such as partners and employees. It extends the liability limits of your primary insurance policy, including commercial auto, workers’ compensation, general liability, and more.
In addition, the coverage follows you, meaning you’re protected worldwide. The most common limit for umbrella coverage is $1 million, but higher limits are available.
3. Why do I need it?
The more assets you have, the more protection you need — particularly when court awards are trending increasingly higher. Umbrella coverage offers that extra layer of security. This added protection becomes especially valuable when incorporating new elements into your business, such as hiring employees or adding new vehicles to your fleet. Given that a significant amount of claims covered by umbrella insurance involve business-related losses, having this coverage in place offers peace of mind in your various business operations.
4. How do I get it?
Umbrella coverage is relatively inexpensive, especially when compared to the amount of coverage you receive. Talk to your independent agent to learn more or to purchase umbrella coverage for your business.
To learn more, contact your insurance agent for a quote, or find an agent near you.
