What is Commercial
Umbrella Insurance?
A commercial umbrella insurance policy sits on top of all other insurance policies you have and whenever you can’t meet the costs using an insurance policy, the umbrella policy kicks in to help you overcome the costs involved. Say for example, when your business is faced with a large lawsuit of around $1.5 million, but your personal auto or homeowners insurance policy is covered for a maximum of only $1 million. In normal circumstances, you are forced to pay the money out of your pocket, but if you have an umbrella insurance policy, then the extra $500K can be taken care of by the commercial umbrella insurance policy.
But commercial umbrella insurance can’t cover all types of insurance policies as it can cover only for general liability insurance, employer’s liability insurance and hired and non-owned auto liability insurance. So before taking a commercial umbrella insurance, you may need to understand the underlying policies covered. And in terms of applying a claim for the commercial umbrella insurance, you may need to have the right policy covered under the umbrella insurance and the maximum limit should have been exhausted in the policy. And always remember, the commercial umbrella insurance can never be used as a standalone policy for making any claims. It can only be used along with any underlying policies and only if the amount is exhausted in any of the underlying policies, then the umbrella insurance policy kicks in.
Who needs Commercial
Umbrella Insurance?
A commercial insurance policy is not a must have for every business out there, but it is always good to have one. Mostly your other insurance policies will provide cover for all the damages and losses and in unforeseen circumstances when you are forced with a situation when your insurance limit is not enough to cover for you losses. Then you may be left stranded without some immediate cash to rebuild your business or pay for lawsuit to come out of the problem safely. And this is where a commercial umbrella insurance policy comes to your rescue.
If you are dealing with high-end clients and even a small mistake can cause huge losses to them. And your regular insurance coverage won’t be enough to handle the expenses involved. Take for example, a wealthy business tycoon visits your office, trips and falls over to injure his back. So he’s bedridden for few weeks and incurs huge losses and files a civil lawsuit against you to compensate for the losses. But since his daily income will be in thousands of dollars, a week income may amount to several thousand dollars and your general liability insurance can’t address that magnitude of a claim. And this is where, if you are fortunate enough to have taken a commercial umbrella insurance policy, then you never need to worry as the insurance will cover for the losses and provides the peace of mind you deserve.
With our thorough knowledge of all the services we support and the industries we serve, we make educated recommendations which help our customers take advantage of the best, most economical coverage possible. At Brookhaven Insurance agency we help you choose policies that address your needs and ensure protection. And we do it all clearly and with purpose.