In many industries the primary limits protecting your company may not be enough to give your business the protection it needs. Commercial Umbrella coverage increases your limits, helps bridge gaps, provides greater protection against claims and provides you with peace of mind so you can concentrate on growing your business.
The Insurance Services Office (ISO) Commercial Liability Umbrella is a stand-alone coverage form that contains its own coverage, exclusions, and conditions. It provides excess limits over General Liability, Automobile Liability, Employers Liability, and other underlying liability coverage forms or policies. In addition, and because it is a stand-alone coverage form, it may include coverage that underlying coverage forms or policies do not include or provide.
Commercial liability umbrella coverage begins when your other coverage ends. Umbrella insurance provides protection over the limits of any other coverage forms. The most common underlying coverages are:
Please be advised that the umbrella does not respond to a coverage unless the underlying coverage form also covers it.
What are the differences between Commercial Umbrella & Excess Liability Policies?
Commercial Umbrella – The commercial liability umbrella coverage form is complete. It has its own insuring agreements, exclusions, conditions, limits, and definitions. It refers to the underlying coverage forms or policies but the insurance it provides is based on the coverage form itself.
Excess Liability – Excess policies are dependent policies. They are based on the underlying coverage instead of having their own insuring agreements, exclusions, conditions, and definitions. They do not add to that underlying coverage.
Other Business Insurance Policies to Consider
Accidents are unpredictable, some accidents are small, yet others can be catastrophic. Limited Liability Company structure is designed to provide protection to businesses when it comes to such claims, however, if the corporate veil is pierced, for instance if the plaintiff can provide evidence that the LLC and business owner were inseparable, then the business owner can be held personally liable, leaving his personal assets open to seizure.
If you answer any of these questions yes, you might want to consider at least getting a quote.
Some of the specific reasons businesses invest in Commercial Umbrella & Excess Liability policies:
Umbrella insurance typically increases the limit of the underlying policy in $1 million increments. The higher you raise your policy limit, the more you’ll end up spending on umbrella insurance. Small businesses usually purchase umbrella insurance to fulfill a contract calling for limits that are above the standard. Standard limits for insurance are:
The following factors can increase the cost of umbrella insurance: