person walking down street with an umbrella in the rain

What Would My Business Need a Commercial Umbrella Policy For

One thing that will always be true for business owners is that there is a strong need to protect the business from whatever fate may befall it. There are many situations that you might find yourself in with your business where you need to make sure that it has that protection. In fact, this is exactly what insurance is for.

In this blog post, we’ll look specifically at one of the most useful kinds of commercial insurance: a commercial umbrella policy. We’ll look at what it is, how it can be useful, and why you might need one for your own company.

What Is Commercial Umbrella Insurance?

The purpose of commercial umbrella insurance is to offer an extra layer of protection for your business, which could come into play in a variety of circumstances where you also have some underlying insurance protections in place. When a claim on one of those reaches the limit of its liability, the commercial policy comes into play with extra liability protection for the business.

This can prove very useful in several ways. You might be in a position where your company is being sued, but your business liability coverage doesn’t account for the full amount. Here, you may use your commercial umbrella insurance policy to step in and cover the rest of the amount. This can prevent your company from getting into serious trouble.

Another major feature of a commercial umbrella policy is that it will usually cover you for legal defense costs, up to the total amount covered by the policy.

How Much Does Commercial Umbrella Insurance Cover You For?

The range for how much commercial umbrella insurance covers is great, as does any kind of insurance policy, but usually the very lowest that such policies start at is around the $1 million mark. This range normally extends up to around $15 million. Sometimes, you may also secure a policy that reaches beyond that upper limit.

Why Should You Get a Commercial Umbrella Policy?

If you are seeing the benefit that you would have from having this kind of policy, then you are not alone. Many companies make use of an umbrella policy. But if you are still wondering why you would want to have such a policy in place, it’s actually quite simple to understand.

The main reason to get hold of such a policy is that it protects you against large losses higher than your primary policies can provide. If you already have the largest underlying policy you can get, but you think you might need more protection, then an umbrella policy will provide it for you.

Some businesses are obviously more vulnerable to large losses than others, so if you run a company that falls under that category, consider getting an umbrella policy.

You might also, at other times, need to have an umbrella policy in order to fulfill the requirement of a certain contract. Maybe a partner, client or even a supplier demands that you have such a policy in place, and you have decided it’s best to keep them on board and fall in line with that contract.

Other situations are if your employees drive their own vehicle for work, or if you have business premises open to the public. In those cases, you might also want to consider a policy. You can see more circumstances here where it’s a good idea to have an umbrella policy here.

How To Get a Commercial Umbrella Policy

If you have read this far, you are now versed in the benefits of the commercial umbrella policy, and might wonder how you can get hold of one for your own business. To do so, you’re going to want to get in touch with an insurance agency or broker. They will determine your needs and work to find a policy that will suit your situation best.

Click here to find out more about such an agency. With a new commercial umbrella policy in place, it will protect your business against any claims that might come your way in the future.