How Umbrella Insurance Benefits Your Business

As a small business owner, you may be familiar with general liability policies, commercial auto insurance and professional liability insurance. However, even with these policies in place, you may still be vulnerable to lawsuits and other unforeseen incidents that can quickly deplete your company’s assets. This is where a commercial umbrella policy can come in handy. In this blog, we’ll explore the benefits of a business umbrella insurance policy and why it’s a good idea to consider adding it to your coverage.

What is Commercial Umbrella Policy?

A commercial umbrella policy, also known as an excess liability insurance policy, provides additional coverage beyond the limits of your underlying policies, such as general liability, commercial auto insurance and professional liability insurance. This policy helps protect your business from catastrophic events that may exceed your primary policy limits, such as property damage, bodily injury or liability claims.

Additional Coverage and Higher Limits

One of the key benefits of a commercial umbrella insurance policy is that it offers much coverage and higher limits compared to traditional liability policies. In other words, it provides an extra layer of protection for your business. With an umbrella policy, you can increase your liability limits beyond what is offered in your underlying policies, which can be particularly beneficial if you operate a high-risk business.

Coverage Gaps and Peace of Mind

Even if you have primary policies in place, there may still be coverage gaps that could leave you exposed to liability risks. A commercial umbrella policy helps fill these gaps by providing additional liability coverage. With the added protection, you can have peace of mind that your business is covered in case of unforeseen incidents, such as a car accident, personal injury or damage to rental property.

Legal Fees and Medical Expenses

Another benefit of a commercial umbrella insurance policy is that it can cover legal fees and medical expenses that may exceed your primary policy limits. In the event of a lawsuit, legal costs can quickly add up and your primary policy limits may not be sufficient to cover all the expenses. An umbrella policy can help bridge the gap and provide the financial protection you need to cover these costs.

Personal Umbrella Insurance

If you’re a small business owner with a high net worth, you may want to consider adding a personal umbrella policy to your coverage. This type of policy provides extra protection beyond your business insurance and can help protect your personal assets in case of a lawsuit.

Standalone Policy

A commercial umbrella insurance policy can be purchased as a standalone policy or added as an endorsement to your existing policy. If you have multiple underlying policies with different insurance carriers, a standalone policy may be the best option to ensure that you have adequate coverage for your business needs.

Independent Insurance Agent

Commercial Umbrella insurance policy offers many benefits, including additional protection, higher limits and legal and medical expenses coverage. It can provide your business with an extra layer of protection and peace of mind that your assets are secure in case of unforeseen incidents.

When shopping for commercial umbrella insurance, it’s important to work with an independent insurance agent who can provide you with unbiased insurance advice and help you find the best coverage at the most competitive rates. An independent agent can also help you evaluate your risks and determine the amount of coverage you need.

At The Secret Insurance Agency, we have commercial insurance specialists that can help you cover your business for what you need. Contact us at 973-812-7327 to speak to a specialist today.