Umbrella Coverage

What is Commercial Umbrella Insurance?

Commercial Umbrella Insurance is designed to extend and enhance the limits of your existing business insurance policies. It provides additional coverage on top of your underlying policies, such as General Liability, Auto Liability, and Employers' Liability Insurance. This insurance is crucial for protecting your business from large-scale claims and legal expenses that can exceed the limits of your primary coverage.

Underlying Coverages

1. General Liability Insurance: This covers claims for bodily injury, property damage, and personal injury. If a claim exceeds the limit of your General Liability Insurance, Commercial Umbrella Insurance can help cover the additional costs.

2. Auto Liability Insurance: Provides coverage for accidents and injuries caused by company vehicles. If an auto liability claim surpasses the limits of your primary Auto Liability Insurance, your Umbrella policy can cover the excess amount.

3. Employers' Liability Insurance: Covers claims related to employee injuries that are not covered by Workers' Compensation Insurance. Commercial Umbrella Insurance extends coverage if these claims exceed the limits of your Employers' Liability Insurance.

4. Commercial Property Insurance: Protects your business property from damage or loss. While not typically an underlying coverage for Umbrella Insurance, it’s essential to understand that Umbrella policies generally cover liabilities rather than property losses.

Key Benefits at a Glance

• Additional Coverage: Extends the limits of your existing liability policies, providing extra protection against large claims and lawsuits.
• Broader Protection: Covers a wide range of liabilities beyond the limits of your primary policies, including legal defense costs and settlement amounts.
• Peace of Mind: Offers financial security and peace of mind, knowing that you have an additional safety net to handle unexpected, high-cost claims.
• Cost-Effective: Provides extensive coverage at a relatively low cost compared to increasing limits on each underlying policy individually.
• Comprehensive Protection: Ensures that your business is protected against potentially devastating financial impacts from lawsuits or large claims.

Commercial Umbrella Insurance Statistics

To underscore the importance of Commercial Umbrella Insurance, consider these relevant statistics:

• Claim Size: Approximately 30% of businesses with liability claims face losses exceeding $1 million. Commercial Umbrella Insurance can help manage the financial impact of such significant claims.

• Litigation Costs: The average cost of defending a liability claim that exceeds policy limits can range from $50,000 to $250,000. Umbrella Insurance covers these legal defense costs, providing crucial support for your business.

• Settlements: Large settlements in liability cases can exceed $500,000. With Commercial Umbrella Insurance, you can protect your business from the financial strain of such high settlements.

• General Liability Limits: The average limit for a General Liability Insurance policy is around $1 million per occurrence. Umbrella Insurance provides additional coverage, typically starting at $1 million, to extend beyond these limits.

• Auto Liability: In severe auto accidents, liability claims can exceed $1 million. Commercial Umbrella Insurance helps cover the excess amounts, ensuring that your business is protected from large-scale financial liabilities.

• Employer Claims: Claims for employee injuries not covered by Workers' Compensation can reach significant amounts, with some claims exceeding $500,000. Umbrella Insurance extends coverage for these types of liabilities.

Commercial Umbrella Insurance is an essential component of a robust risk management strategy, providing additional coverage to protect your business from high-cost claims and legal expenses. By extending the limits of your existing policies, this insurance offers enhanced protection, financial security, and peace of mind.

Give us a call TODAY at 703-674-0299 to get your business covered.