When Should You Have Commercial Umbrella Insurance?

A general liability policy only covers so much, and that’s where an umbrella policy comes into play. As a small business owner, you need to know your exposures and how to protect them, and while commercial umbrella insurance isn’t a requirement, your clients might require you to have high coverage limits. If your business has more than one type of underlying business insurance, including commercial auto liability and employer’s liability, an umbrella policy will supplement what they can’t protect. Having commercial umbrella insurance could make a huge difference in the event of a situation that can’t be avoided.

If you don’t have umbrella coverage, this is when and why you’ll need it:

When to Get Coverage

When thinking about whether your business needs coverage or not – the key thing is to think about what types of businesses will benefit the most from this coverage. Ask yourself these key questions:

  • Does my business serve high net-worth clients?
  • Do I have clients that require higher liability limits than others?
  • Do any of my contracts require this type of coverage?
  • Does my business have have significant auto liability, employer’s liability or general liability exposures?
  • Are you trying to avoid dipping into personal savings in the event of a catastrophic event?

If you can answer yes to any of these questions, it’s probably time to consider a commercial insurance policy. Commercial umbrella insurance helps out with many types of exposures.

Policy Limits

The limits on your policy depend heavily on on the nature of your business, according to the Balance. Plenty of business are subject to catastrophic loss, including hotels and pharmaceutical companies. It’s important to discuss with an insurance broker exactly how much coverage you’re going to need. For example, if your business sells alcohol, you’re going to want liquor liability coverage. If you own a construction business, you’re going to want coverage for that specific industry.

The Cost

The cost is going to vary depending on the insurance carrier, limits and the coverages that are purchased. With high net-worth clients, the costs might be higher for your premiums, but it will be worth the protection. The range of protection will vary depending on a few factors, making it important to really choose the best policy. There’s plenty of insurance carriers who are willing to offer coverage. You just have to find the one that offers the best commercial insurance coverage.

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.

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