As a business owner, wouldn’t you like to protect yourself for more than just the base value of your assets? Investing in an umbrella policy gives you that excess liability coverage that can get you through the really hard times should a loss happen.
For instance, let’s say you face a lawsuit above the limits of your standard insurance policy. You have $1 million in general liability coverage and the claim against you (or your business) settles at $1.5 million. A small business umbrella policy could get you over that gap in coverage … keeping you from having to drain your bank account to cover the cost.
Umbrella coverage is the most affordable way to benefit from higher limits above and beyond a standard policy like general liability, worker’s compensation / employer’s liability, or business auto liability policies.
There is a difference between Excess Liability and Umbrella coverage that we should note. Excess Liability will cover you over one policy, usually General Liability. An Umbrella Policy will give you added protection over all of your underlying policies.
Are there policies that umbrella liability insurance would not work with?
An Umbrella policy will not extend coverage limits on an Errors and Ommisions/Professional Liability, Employment Practices Liability and Directors and Officers Libility policies. This is because a general liability policy, work comp/employer’s liability and business liability are written on an occurrence form and the latter are written on a claims made form. In order for umbrella to offer coverage it has to mirror the form of the underlying policy(ies).
Couldn’t I just up my limits on my standard policies to cover me for higher amounts?
The main benefit of purchasing Business Umbrella Insurance, rather than adjusting the limits on your existing policies, is that an Umbrella policy will be way more cost-effective. So our question to you would be, wouldn’t you rather spend less each month on premium payments to enjoy significantly greater insurance protection?
If I have several policies for my business, can I extend them under one umbrella policy?
Yes! Our team can help you expand your coverage limits on several policies through a single Umbrella policy. Instead of wasting your money on adding higher limits to your General Liability, Auto Liability, and Worker’s Comp / Employer’s Liability policies, you could invest in a single Umbrella Liability policy that extends all three.