What’s the Difference Between Commercial Umbrella and Excess Insurance?

40 percent of businesses are considered profitable; 30 percent aren’t and another 30 percent break even, according to Small Business Trends. While the profits of your business vary, having insurance coverage is something that everyone needs. An investment piece, having this kind of cushion can save a business from a lot of pain in the long run, including possible closure.

That’s when you start asking, “Who can answer my commercial insurance questions?” The answer is simple with David G. Sayles Insurance Services: expect the coverage that you need.

When you need extra, you can expect to be covered through exclusive umbrella coverage. It’s also important to note that while umbrella coverage and excess coverage are kind of similar in purpose, excess insurance does differ from umbrella. If you’re looking towards purchasing commercial umbrella insurance, here’s all the fast facts that you need to know.

When Excess Insurance is Needed

Neglectful workers, fraudulent activities and natural disasters are some problems that can cause the end of a company. And 13 percent of businesses have experienced one of those dire situations, according to Small Business Trends. Not having the right coverage can really put a business in a tight place.

Some commercial insurance questions to ask include whether you’re going to need extra coverage and what type. For excess insurance, always remember that the definition is in the  name: this type of coverage pays for excess damages.

Everything starts with the initial policy, which would be the underlying policy. Excess insurance is essentially there to provide extra coverage above the core policy. An umbrella insurance policy works to expand coverage while  excess insurance gives higher limits in case of some type of cataclysmic loss.

How Umbrella Insurance Really Works

Like excess liability insurance, umbrella coverage is here to cover what your general commercial insurance won’t. More commercial insurance questions to ask include whether umbrella coverage is right for you and how it protects your business.

Umbrella coverage is another type of excess coverage that works to give you coverage for claims that are more than your current limit, according to BCS. It’s a way to get broader coverage in the event of a claim. For example, maybe you need auto coverage in a foreign country but your general policy doesn’t offer it. That’s where umbrella insurance steps in.

Any liability gap you may have, consider it covered under an umbrella policy. Umbrella insurance and the flexibility of it has proven to be crucial for many businesses, both big and small. If you have more commercial insurance questions, be sure to contact an agent with David G. Sayles insurance as soon as possible. With our expertise, we’ll get you on the right track fast.

About David G. Sayles Insurance Services

At David G. Sayles Insurance Services, we strive to protect the investments of homeowners like you. Our comprehensive policies are customized for you to provide the exact coverage you need. For more information, contact us today at (800) 439-0292.