Commercial Umbrella Insurance
What is commercial umbrella insurance?
Commercial umbrella insurance provides an extra layer of liability protection beyond your existing policies, such as general liability, commercial auto, or workers' compensation. It may also be required by some vendors.
What does it cover?
Commercial umbrella insurance increases your liability coverage, providing additional funds for substantial claims. It does not cover situations that your underlying policy cannot, as it typically operates on a “follow form” basis. This means if a loss is covered by your underlying policy and exceeds its liability limit, the umbrella policy will cover the difference. This can include liabilities such as product liability or customer injury.
Claims Scenario:
If your employee is driving a business vehicle and is found at fault in an accident, resulting in a $1.5 million lawsuit, your business auto policy with a $1 million liability limit would leave a $500,000 gap. This is where your commercial umbrella insurance would come into play.
How much is it?
Premiums for commercial umbrella insurance vary based on the coverage you need and the type of industry you operate in.