If you’ve already purchased insurance for your business, you may believe you have “enough” coverage for your risks
Business coverages like a General Liability policy (sometimes called GL or CGL), a Business Owners Policy (BOP), or an Employment Practices Liability (EPL) policy offer excellent protection under normal circumstances. But with the potential for lawsuits, large judgments, and extreme settlements, it is wise to consider if your policy limits are enough.
If your business has risks that could result in larger than policy limit claims, a commercial umbrella policy may be worth your investment. But why, and what do they cover? Let’s discuss it.
What Does A Commercial Umbrella Policy Offer?
A commercial umbrella policy helps “extend” the limits of your liability coverages. If you have a situation where you’ve reached the payable limit of your underlying policy, the commercial umbrella may help cover the additional amount. For example, if a customer gets severely injured at your place of business and sues you as a result, the costs from that lawsuit may result in a higher amount than the limits of your policy. To illustrate, a GL policy with a $1 million liability limit would not be enough to cover a $1.5 million judgment or settlement, but a commercial umbrella can help bridge the gap in that coverage difference.
What do Commercial Umbrella Policies Cover?
Most commercial umbrella policies extend coverage over your business’s liability policy(ies), and can help cover you for medical expenses, legal fees, and damages that result from a lawsuit. In addition, they may provide optional coverage for auto liability, EPL, Directors & Officers liability, Liquor liability and more.
Adding a commercial umbrella is likely not as expensive as you might imagine. For small businesses, it may be as little as a few hundred dollars per year. For larger businesses, the cost may be proportionally inexpensive as well. The extra peace of mind, however, may be invaluable for your business.
Our team can help you review your risks and discuss your options for coverage, such as a commercial umbrella. Let us help you be confident in your coverage limits.