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What is Commercial Umbrella Insurance?

By February 15, 2022February 17th, 2022Business Insurance

There are a lot of details to keep track of when you’re running a business. Employment, finances, premises, day-to-day operations, sales, consumer relations, and of course the actual product or service your group provides. After all of that, picking through insurance stipulations is probably the last thing you want to worry about– and that’s why we’re here. Guiding you through this process so you can have peace of mind is our specialty. But policies for specific aspects of your business– like general liability, property, or errors and omissions– are only part of the bigger picture. So: what is commercial umbrella insurance, and how can it help your company?

Umbrella Insurance

True to its title, umbrella insurance acts as a sort of blanket policy. It supplements your more specific, individual policy coverages and goes above and beyond their range. This is because most business insurance policies have a payout limit, where your losses and expenses are only covered up to a certain point. If the unthinkable occurs and your company is facing damages that eclipse your payout limits, you will be responsible for the rest of those costs. This situation is where umbrella insurance kicks in.

Let’s say, for example, your business undergoes an unexpectedly extreme flood. Your computer equipment has been damaged, your floors are a mess, and you’re forced to remain closed for over two weeks while reconstruction takes place. All of this ends up costing you $300,000. Luckily, you have flood insurance, but your policy’s payout limit is only $200,000, leaving your business to shoulder the remaining $100,000. With commercial umbrella insurance, this extra cost would be covered. Your flood policy would take care of the first $200,000 and your umbrella policy would take up the remaining $100,000, allowing your business to fully recover.

Advantages of Purchasing Umbrella Insurance

When worst comes to worst, umbrella insurance has you covered regardless of where your individual policies end. Expecting the unexpected might just come in handy some day, and until then, an umbrella policy will give you peace of mind. If you’re skeptical and don’t believe the risks of needing more coverage will make up for the costs, don’t worry– the low probability of umbrella insurance’s payout makes it much less expensive than you’d think. Low risk, low cost!

Think Commercial Umbrella Insurance Might Be Right For You?

We can help! Our team at Liberty Preferred is passionate about finding the best insurance plan to meet your specific needs. If you’re a business owner and think it might be time to purchase commercial umbrella insurance, just fill out this quick form or call 410-552-0403 to get in touch with us. One of our insurance advisors will reach out to you to review your information and present you with the appropriate solution. There’s no obligation, just good-old-fashioned advice. We’re proud to offer comprehensive commercial umbrella insurance in Maryland, District of Columbia, Pennsylvania, and Virginia.