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What do commercial umbrella insurances cover?

Your company is covered by your company insurance – but is it enough? A commercial umbrella insurance provides coverage when a claim exceeds the limits of your other insurances. This type of policy is usually quite affordable and offers a critical level of protection against losses from significant claims or lawsuits.

Do you need commercial umbrella insurance?

A claim filed against your company can be expensive and can be much higher than the limits of your general liability insurance. Not all companies need an umbrella policy, but if you want to increase your insurance coverage, an umbrella policy is usually cheaper than raising the limits of your existing insurance policies. An umbrella insurance protects against several types of claims after your other insurance limits have been exhausted, including:

  • Claims for damage to Libel, defamation and reputation
  • Vehicle accidents in non-commercial vehicle accidents
  • Liability for product liability [19659005] Customer Damages

You do not need commercial umbrella insurance for permits or licensing. However, if your policy limits are lower than required, it may be more affordable to add umbrella insurance rather than raising the limits of your current insurance policies. A commercial umbrella insurance cannot be purchased separately and is only available if your company is covered by liability insurance.

How much does commercial umbrella insurance cost?

Several factors play into the cost of a commercial umbrella insurance. Some of the factors to be evaluated include:

  • The level of risk in your industry
  • The size of your business
  • The type of product or service that your business offers customers

Generally, a commercial umbrella insurance will be in the range $ 500 to $ 1500 per year. These policies provide increased protection in increments of $ 1 million.

Is a commercial umbrella insurance all we need?

Depending on the business of your business, you may need to take out several other insurances, as general liability insurance or business umbrella insurance does not cover all business risks. Some of the other coverages that a company needs may include:

  • Auto Liability Insurance: This type of insurance is for rented vehicles or the use of personal vehicles for the company's work.
  • EPLI (Employment Practices Liability Insurance): If an employee sues your company for incorrect termination, discrimination or other issues, this insurance keeps your company covered.
  • D&O Insurance : If a director or official of your company becomes the target of a lawsuit, this type of insurance pays the cost of legal representation and damages.
  • Fire liability insurance : If you rent or rent a facility and a fire occurs, the owner can accuse your company of being responsible for the damage to the building. Fire liability insurance protects against this eventuality.
  • Alcohol Liability Insurance : This type of insurance is essential for owners of restaurants, bars or other places that serve alcoholic beverages.

The Risks of Doing Business

In the United States, doing business involves many risks, including litigation. Your insurance can help you keep your business going through challenging times. A commercial umbrella insurance can give you peace of mind, so you can focus on increasing sales, marketing and delivering goods or services without worrying about the consequences of legal action. For more information, meet one of our experienced business insurance agents for help in choosing the best insurance for your budget and your needs.

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