Exposure to liability losses of catastrophic size is no longer limited to large corporations or to the wealthy. The willingness of the public to sue has increased the number of lawsuits and the size of judgments awarded. What’s more, many Commercial Automobile, General Liability and Employer’s Liability limits are not sufficient to cover some of the court awards made today. This coverage is becoming more and more of a requirement for businesses performing work as a sub-contractor on behalf of a larger firm.
Commercial Umbrella Protection Makes Your Business More Secure
A Commercial Umbrella Policy will protect your business against large claims and settlements that have exhausted the underlying liability limits of your standard business policies. It will also flow to certain uninsured gaps that may not be included within the underlying coverage.
The term “Umbrella” is used because this coverage will extend over your entire business providing a level of security that is the most comprehensive available.
Umbrella Coverage does not insure against risks of direct physical loss to any of your property or autos but is strictly for damaging lawsuits and claims settlements. This coverage is similar to but should not be confused with Excess Liability coverage, which serves only to extend the underlying coverages that already exist up to the stated limit of liability under an Excess Liability Policy.
Commercial Umbrella Liability will also pay the costs of your legal defense including court costs, interest on judgments and premiums on necessary bonds.
Coverage under the Commercial Umbrella Policy is written in increments of one million dollars and supplements your present policies to provide broad liability protection.
Your coverage includes a self-insured retention of $10,000 (or deductible) that you agree to absorb before the Commercial Umbrella applies in the rare occasion of a loss not covered by any other liability policy.
Cost of this high level of protection is comparatively low. Premiums for this coverage will start at about $400 for a small business. Better still, the Commercial Umbrella frees you from most catastrophic liability judgments. If you have 7-10 employees you can expect premiums in the $1250 to $2,250 range dependent upon a wide assortment of variables. We can provide you with details about our Commercial Umbrella Policies if you would like more information.