Commercial Umbrella Insurance 101

The forecast says that there’s a minor chance of heavy rain, but you dress in waterproof shoes and grab an umbrella just in case. You never know, after all. 

This is the same logic for buying corporate umbrella insurance: you never know what will happen, but if something does happen, and it exceeds your current liability, you’ll want the umbrella coverage just in case. Commercial umbrella insurance protects you and your assets when a claim exceeds your general liability insurance.

For example, if it does rain and a customer slips and falls on your floor before you have a chance to dry it, you may be sued for $2 million but only have two-thirds of that in liability coverage. The commercial umbrella policy could make up the difference. The policy could also cover medical expenses, damages, and attorney fees for the lawsuit. 

Commercial Umbrella Insurance, Yellow Umbrella

You should certainly consider a commercial umbrella policy if 

  • Your customers are on site, in your space
  • Your employees operate heavy machinery
  • Your employees work in high-risk environments
  • Your employees ever work on or with customers’ property 
  • You have significant assets 

Clearly, this applies to many companies. However, some companies, such as call centers, where the employees provide services in the closed location of an office and few customers ever enter the space, may not need the benefits of commercial umbrella coverage. 

Work with your agent to determine if your operations may lead to situations where a claim could exceed your liability limits and if commercial umbrella insurance will offer you the kind of additional security appropriate for your needs. Commercial umbrella insurance cannot be added to certain kinds of policies, such as professional liability insurance. 

The agent can also help determine costs, which adjust based on your existing coverage and the type and size of your business. They also adjust based on the level of coverage you choose. Commercial umbrella insurance policies can have aggregate limits ranging from $1 million to $15 million in coverage. Smaller companies with lower risk would be on the lower end of this range. 

Some commercial umbrella insurance policies can be added on top of current policies that are held by other companies. For example, if your general liability insurance is from another company, we can still help you with the commercial umbrella policy. The key is to be prepared, especially when you can’t be sure what you’re preparing for. 

La Porte Insurance Agency offers a range of insurance coverage options for individuals and businesses. Reach out to one of our agents for a consultation to customize a plan for your insurance needs. Call La Porte Insurance Agency at (219) 324-2600 or send us a message