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 receivables or lawsuits.
Do you need a commercial umbrella insurance?
A liability claim 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 damage after your other insurance limits have been exhausted, including:
- Claims for libel, libel and damage to reputation
- Vehicle accidents in non-commercial vehicle accidents
- Product liability claims  Customer damage claims [YoudonotneedcommercialumbrellainsuranceforpermitsorlicensingHoweverifyourinsurancelimitsarelowerthanrequireditmaybecheapertoaddumbrellainsuranceratherthanraisingthelimitsofyourcurrentinsurancepoliciesAcommercialumbrellainsurancecannotbepurchasedseparatelyandisonlyavailableifyourcompanyiscoveredbyliabilityinsurance
How much does commercial umbrella insurance cost?
Several factors play a role in the cost of 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 your business provides customers
In general, the cost of a commercial umbrella insurance will be in the range of $ 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 umbrella insurance does not cover all business risks. Some of the other coverages that a company needs may include:
- Car liability insurance: This type of insurance is for rented vehicles or the use of employees of vehicles for business 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 lease a facility and a fire occurs, the owner can accuse your business of being responsible for the damage to the building. Fire liability insurance protects against this eventuality.
- Liquor 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 lawsuits. Your insurance can help you keep your business going during 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.