Owning a business isn’t easy - and the added threat of costly litigation can throw a wrench into the works. So it is both wise and necessary for companies these days to safeguard their assets against the devastating impact of liability claims and lawsuits.
Most organizations take out policies against property liability claims, product liability claims, and commercial auto liability claims. These liability policies financially protect the insured from allegations that their assets caused property or bodily damage to third parties.
But, what if someone sued your business and the settlement amount exceeded the limits of your primary liability insurance package? Or what if you have to deal with multiple claims that push you over the liability limits? Umbrella insurance can plug in some costly gaps where other liability insurance may leave your business exposed.
What is commercial umbrella insurance?
Commercial general liability, automobile liability, or employer benefits liability should protect your business - in most situations. Adding an umbrella insurance policy into your company’s liability insurance portfolio can provide that extra layer of protection against claims of bodily injury or property damage.
How can a commercial umbrella insurance policy help?
Umbrella insurance can do a couple of things for you:
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- It increases the liability limit that your company’s existing liability policies (e.g., auto liability, general liability, employers’ liability) already provide.
- It expands coverage for the things that your existing policies don’t cover, i.e., the holes in your company’s liability coverage.
- It protects companies of all sizes - even small businesses can apply for limits up to $25 million.
How much does business umbrella insurance cost?
The minimum premium rates for most commercial umbrella policies levels around $500. This rate can differ depending on the type of business you run and several other factors:
- Industry class
- Annual revenue
- Annual payroll
- Number of employees
- Liability history
- Existing/Primary policy premium(s)
Is Umbrella Insurance worth it?
If you think your business is immune to lawsuits, think again. The United States is known as a high-litigation society, which means even a minor accident can land you in a heap of legal trouble. Larger companies protect themselves with exhaustive financial and legal resources against liability claims. Your business should too.
Carriage Trade Insurance works with leading insurance companies to find the right commercial umbrella liability insurance plan for your business. We can help you hire better legal teams, avoid lawsuits, and reach settlements in no time, even if you cross the limits of your current liability insurance coverage. Contact us to learn more.