Commercial Umbrella
Risk Management
Our team of experts is dedicated to providing you with a comprehensive assessment of your risks and quote comparison from our broad network of insurers while ensuring that you have the essential knowledge to make informed decisions on Commercial Umbrella insurance.
The Basics of Umbrella Insurance
Liability expenses can exceed a company's ability to pay claims with their existing liability coverage forcing them to use out-of-pocket means. For instance, a company can encounter a lawsuit that surpasses its underlying liability policy limits. A commercial umbrella policy provides extended liability limits to your existing liability coverage to help settle all claims.
Commercial umbrella insurance is a risk management strategy. Businesses can mitigate risks because of the extra liability coverage. Commercial umbrella insurance can help protect companies from claims that exceed their current liability limits, such as; defamation, work-related injuries, product liabilities, property damages, medical bills, and legal fees.
A commercial umbrella policy increases the coverage for:
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General liability policy - when a third party gets injured on the business premise, the policy covers medical or legal fees.
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Employer's liability insurance - commercial umbrella insurance extends protection against employee-related injuries.
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Hired or non-owned auto insurance - Helps extend liability limits for medical, legal, and damage claim limits for a company's automotive incidents.
Lawsuits against enterprises that impose claims beyond the limits provided by primary liability coverages can threaten the financial well-being of commercial entities. Commercial umbrella insurance benefits all types of companies because there is no guarantee that a claim from an accident, lawsuit, or medical fee will not exceed their primary insurance coverage. Companies with a high liability risk benefit from this additional policy because it keeps them from using business funds to settle claims or default payments. Commercial umbrella insurance coverage mitigates extreme litigations by covering excess claims.
Key Coverage Provisions
Commercial Umbrella Insurance provides extra liability coverage for claims that exceed your existing liability policy limits. Coverages can include:
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Personal injury for both employees and customers
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Contractual liability protection in contracts where the business assumes responsibility for loss or damage
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Non-owned aircraft and watercraft liabilities - when third parties get injuries from a chartered plane or water vessel
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Advertisers' liabilities - in case advertisers get sued for character libel, copyright infringement, or slander.
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Liquor law liabilities - in case an intoxicated individual causes property damage or gets body injuries from alcohol consumption after a company served them alcohol.
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Explosion, collapse, and underground (XCU) liability
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General liability coverage, worker's compensation, and commercial auto policy
Aside from extending liability policy limits, other features in commercial umbrella insurance include:
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Protection extension to insureds
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Insurance against losses covered by the primary liability policy
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Inclusion of the general liability coverage provisions in the policy - noteworthy, the insurance provider analyzes claims not covered by the primary insurance.
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Protects all parties with insurance status - including the executive, subordinate staff, and stakeholders operating on behalf of the organization.
What’s Typically Not Covered?
The scope of what is covered by commercial umbrella insurance varies by carrier. However, a general commercial umbrella policy excludes;
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Companies must have underlying liability coverage to qualify for commercial umbrella insurance. Insurance coverage is unavailable for enterprises without a primary liability policy. For instance, if a company does not have an existing commercial auto policy, the commercial umbrella insurance will not cover any automotive-related liabilities on the company's behalf.
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Commercial umbrella insurance does not cover claims not covered by the underlying liability insurance. The business is responsible for such payouts.
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The policy does not cover property or reputation damages, injuries, or losses inflicted by uninsured parties. The insurance provisions stipulate the insured.
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Care, custody, and control exclusions involving automobiles, planes, or watercraft.
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Commercial umbrella insurance does not insure property insurance claims even when a company has an underlying commercial property policy. It extends coverage over general liability coverages. Therefore, it cannot cover the company's property damages.
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The policy does not insure claims relating to errors and omissions (E&O) policies. E&O policies cover professional mistakes. Additional coverage for such risks is available in the excess liability policies.
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The commercial umbrella policy does not cover claims when they do not exceed the underlying policy's limit.
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The policy does not cover self-inflicted automotive damages and employee theft.
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