Commercial umbrella insurance

Think of a commercial umbrella insurance policy as insurance for your insurance. When a large lawsuit exhausts your liability insurance’s coverage limits, an umbrella policy will cover the difference.

How does commercial umbrella insurance work? When legal costs consume your available coverage, your umbrella policy provides additional funds up to the limit stated in the policy.

For example, umbrella coverage boosts your insurance safety net for situations such as:

• A customer slipping and falling while on your property
• An accident with a business vehicle that causes third-party injuries or property damage
• You or an employee damaging a customer’s property while working at his facility

However, umbrella insurance does not cover the following types of claims:

• Malpractice
• Professional liability (or errors and omissions)
• Employee discrimination
• Damage to your own property

To qualify for umbrella insurance, you need to already own one or more of the following types of small business insurance:

• General liability insurance
• Employer’s liability insurance (often part of workers’ compensation insurance)
• Commercial auto insurance

You also have to purchase a minimum amount of the base coverage to get umbrella insurance. For example, an insurance company might require your general liability insurance to have no less than $1 million in coverage before you can buy an umbrella plan.

Small businesses that have a significant need for liability protection, but a limited budget, can benefit from buying umbrella insurance.  

Insureon helps small business owners compare commercial insurance quotes from A-rated U.S. carriers with one easy online application. Start an application today to protect your business against large liability claims.