Social   Social
Logo
Phone 610-993-2058
  • Home
  • Get A Quote
  • Products
  • Client Services
  • Our Companies
  • Claims
  • Our Team
    • About Us
    • SalesTeam
    • Management Team
  • Contact Us

 

Home > Blog > Why You Need Commercial Umbrella Insurance
SATURDAY, JANUARY 2, 2021

Why You Need Commercial Umbrella Insurance

 a group of men riding on the back of it

Every business must have liability insurance, and the starting point is a general liability policy. However, while general liability insurance can prove essential to your long-term financial security, you should still not consider it a stopping point.

Instead, you will likely need to buy other coverage, including a commercial umbrella insurance policy. Consider why investing in a commercial umbrella plan will make your risk management strategy a lot more comprehensive.

Where General Liability Insurance Stops

When putting together your business insurance package, liability insurance is one of your foundation stones. It will pay for bodily injuries or property damage that you might cause to others through your negligence, products or completed operations.

Even if you didn’t mean for a problem to occur, that doesn’t mean you won’t have to repay someone because they accidentally got hurt. Liability insurance will make sure that you have the money available to reach a settlement with this party, or even fight a lawsuit if one occurs.

However, liability insurance is not all-encompassing. The policy will not cover all claims of negligence that might cause someone harm. Additionally, they will contain limits on how much they will pay you for a qualifying loss. Therefore, if a claim either is not covered by, or exceeds the value of, your liability policy, then you might not have the coverage you need. It is at this point that umbrella insurance becomes necessary.

The Necessity of Umbrella Insurance

A commercial umbrella insurance policy is designed to enhance your existing liability benefits. Therefore, it can essentially take over once you are confronted with the limits of your standard policy.

Suppose, for example, that you have $1 million in bodily injury liability coverage. However, a customer slips and falls in your store, and then sues you for $2 million. That is $1 million more than your liability coverage will pay. As a result, if you don’t have the benefits offered by commercial umbrella insurance, then you will have to pay for your losses out of pocket.

However, your umbrella policy will be able to step in and assist you with the additional cost that is not covered by your standard benefits. The way it works is that you will first file against your standard liability benefits, which will then pay up to their limits. After you have reached those limits, you can file against your umbrella coverage for the remaining cost of the claim. In some cases, you will be able to use your umbrella benefits to cover the full cost of a claim that standard liability insurance won’t cover.

Our job is to help you customize your commercial umbrella benefits to your advantage. That’s why we’re committed to helping you determine both where your standard liability coverage limits end, and where you can benefit from additional coverage.

 

Posted 4:01 AM

Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2023
  • 2022
  • 2021
  • 2020
  • 2019

  • insurance(6)
  • fall home maintenance list(4)
  • condo insurance(2)
  • auto insurance(2)
  • life(2)
  • homeowners(2)
  • life insurance(2)
  • jordan seiken(2)
  • ho-6(2)
  • party(1)
  • drone liability(1)
  • bonds(1)
  • drones(1)
  • a blockage in the sanitary main(1)
  • sewer back-up: aging sewer systems(1)
  • renters insurance(1)
  • combined pipelines(1)
  • tort(1)
  • motorcycles(1)
  • loss assessment(1)
  • nations insurance awareness day(1)
  • personal liability(1)
  • insurance agent(1)
  • dirt bikes(1)
  • broker(1)
  • liability coverage(1)
  • umbrella insurance(1)
  • atb(1)
  • graduation(1)
  • full tort(1)
  • insursance(1)
  • identiy theft(1)
  • umbrella(1)
  • rental car insurance(1)
  • jet skis(1)
  • vendor(1)
  • auto liability(1)
  • condo homeowner(1)
  • wedding(1)
  • limited tort(1)
  • rental car(1)
  • event insurance(1)
  • identity theft insurance(1)
  • contractors(1)
  • drone insurance(1)
  • independent insurance agent(1)
  • condo(1)
  • insurance waiver(1)
  • insurance waiver for rental car(1)
  • tips at keeping my child safe for graduation(1)

View Mobile Version

Raving Fans

Thank you so much for all the time and careful explanation you shared this morning --- You are SO knowledgeable and well spoken!

I have alerted State Farm that I have found a superior company/policy. So, let's proceed with our plan to begin coverage on Monday, July 22!

Many, many thanks again, Julie!

Cynthia Pierce

Read More

Contact Us

  • Travelers Logo
  • Foremost Insurance Group
  • Safeco Logo
  • Chubb Logo
  • Pure Logo
  • Westfield Logo
  • Nationwide Logo
Social   Facebook

Helpful Site Links

Raving Fans Our Story Awards We Give Back BHHS Fox & Roach Accessibility Privacy Policy Terms of Use
Personal Lines Business Lines Signature Client Services Our Mission Careers Refer A Friend Disclaimer Glossary

Latest Blog Updates

Latest Blog Updates
All Posts
Powered by Insurance Website Builder