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Why You Need A Commercial Umbrella Policy

By February 2, 2023February 6th, 2023Insurance

With each passing year, the number and severity of lawsuits filed and judgments sought are rising exponentially.  Defense costs alone can amount to considerable sums. Are your liability insurance limits enough to cover a potential multimillion dollar judgment and could your business survive such a loss?

While standard liability policies can help protect a company from a broad range of situations, there are certain times when losses may exceed what primary insurance can fully cover.  This is why we highly recommend a commercial umbrella policy for our business clients.  

Why You Need a Commercial Umbrella Policy

A commercial umbrella policy increases your business’s liability coverage when the cost of a lawsuit exceeds the limits of your core business coverage. Specifically, a commercial umbrella policy is designed to protect your business from bodily injury, property damage, personal injury and advertising injury lawsuits. 
 
Typically, the more businesses interact with clients and customers in person, the higher their liability risks. Your risks can be even greater if your employees use heavy machinery or dangerous equipment. This coverage can help if your business:
 
  • Frequently interacts with customers
  • Works on someone else’s property
  • Allows the public to visit during open hours

Consider the following to assess your need for a commercial umbrella policy:

  • Do you own a building?
  • Does your business own any vehicles?
  • Do you have clients visit your business?
  • Are you responsible for a job site?
  • Does your business have a website?
  • Do you operate heavy machinery?
  • Does your business serve alcohol?
  • Does your business own watercrafts?
  • Are you a manufacturer’s representative?
  • Are you a distributor?
  • Do you use subcontractor?
  • Do you manufacture a product?
  • Do you travel?

If your answer is yes to any of these above, you need a commercial umbrella policy.

What Does a Commercial Umbrella Policy Cover?

Commercial umbrella insurance is designed to provide extra liability coverage above and beyond the protection offered in your general liability insurance, employer’s liability insurance and commercial auto liability insurance policies. If your underlying coverage reaches its limits due to multiple claims or a large settlement during the year, your commercial umbrella policy coverage bridges the gap to cover any additional liability.

Without commercial umbrella coverage, you will have to pay out of pocket when your underlying insurance policy limits are exhausted. We know you have worked hard to build your business, and we recommend that you protect the assets of your company with a commercial umbrella policy. 

To get started with a commercial umbrella policy and other solutions for your business, click here. 

 

Choosing the right insurance agent is one of the most important decisions you will make. The Turner Agency, Inc. is a local Trusted Choice® independent insurance agency headquartered in Greenville, South Carolina.  Serving the Upstate of South Carolina and beyond since 1962, we offer a variety of personal and business coverage choices and can customize an insurance plan to meet your specialized needs for your business, homes, automobiles, recreational vehicles, secondary homes, and more. 

Information in this article is not all inclusive regarding the subject matter and includes data from Auto Owners Insurance, Travelers, and Central Insurance. This content is offered for educational purposes only. 

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