Commercial Umbrella Insurance

With liability lawsuit awards and defense costs rising, will your existing insurance be enough to cover you if you face paying catastrophic-level damages?

While your existing commercial liability policies will likely be sufficient to cover you in most instances, there's always a chance that your policy limits might be breached by a major claim.

So, for example, if your commercial general liability policy has a $1m cap but a lawsuit results in $1.5m of awards and costs against you, that extra half million would be coming out of your pocket.

In many cases that could threaten the survival of a business. Which is why growing numbers of small businesses and commercial/apartment building owners are turning to the simple and low-cost solution of commercial umbrella insurance.

It's a form of excess liability insurance, which kicks in once the coverage in your existing, standard liability policy has been exhausted. So, in the case quoted above, commercial excess umbrella insurance would pay that additional half million dollars.

It protects you against the extra costs of claims, medical bills and defense for a wide range of liabilities such as causing bodily injury, property damage and other risks like slander and malicious prosecution.

It may also provide valuable coverage against certain liability risks that are not included in your standard policy.

You must already have a standard policy, such as commercial general liability insurance, employers liability insurance, commercial auto liability insurance or a BOP, before you can get an umbrella policy.

Furthermore, there are some types of liability insurance that cannot be extended through an umbrella policy. The experts at Definitive Insurance can help you with this.

Because the chances of a lawsuit claim exceeding your standard coverage may not be high, umbrella coverage is available at a relatively low cost. Yet, for a business, it can make the difference between survival and disaster.

The actual cost will depend on a number of factors such as the size and type of your business, the perceived risks of a liability claim, past claims history and so on -- plus, of course, the amount of coverage you need (usually $1m to $2m but up to $30m).

The median cost for $1m of umbrella coverage is around $600. The general range is between $400 and $2,500. A $5m umbrella can cost as little as $950.

Working with a specialist agent like Definitive Insurance Solutions will ensure you get precisely the right protection at highly competitive rates.

You need to talk to an expert, who will save you the time of shopping around.

As an independent agent, Definitive Insurance Solutions works with multiple insurers so we can secure the best protection, customized for your business.

For example, although you must have a standard policy in place first, your umbrella policy can come from another insurer offering better coverage or terms. In fact, your existing liability insurer may not provide umbrella coverage at all.

We also have outstanding expertise in the field of commercial umbrella insurance for rental properties.

Questions? We have the answers. Contact Definitive Insurance Solutions now for a no-cost, no-obligation discussion and a free selection of quotes to meet your needs. Give us a call at 717-537-1104 today!

Do it now, though. That unwelcome, surprise damages claim could be just around the corner.

Call us at 717-537-1104 for immediate assistance or get a quote online to find out how we can get you protected.