An unexpected disaster can damage, stall, and even destroy your business. Commercial insurance coverage helps you limit your financial exposure, while simultaneously allowing you to focus your responsibilities on maintaining operations and retaining your customers.
Taking it a step further, commercial umbrella insurance provides additional liability coverage to guarantee all of your assets and needs are protected.
Additional Liability Coverage with Umbrella Insurance
Commercial Umbrella Insurance provides companies with supplementary liability coverage to help protect against the potentially disastrous costs of claims. This is particularly beneficial to clients who experience claims that may result in becoming the target of a lawsuit.
In the event that your commercial claim exceeds the limits of your business’s underlying primary insurance policy, commercial umbrella insurance provides an additional layer of coverage to further protect your company assets. Without such coverage, business owners may be required to pay out of pocket for any residual medical bills, legal fees, and damage expenses.
For example, if an employee or client slips and falls in your business, a settlement may be reached. However, if your business’s general liability insurance does not cover the entire settlement amount, you will be responsible for paying any amount beyond your policy coverage out of pocket. With a commercial umbrella policy, the additional costs and fees beyond your general liability policy would be covered.
- High liability limits – depending on your specific needs, umbrella liability limits can reach upwards of AED 37 million (100 million USD).
- Worldwide protection – depending on your specific needs, commercial umbrella insurance can protect all of your organizational assets (e.g. local, regional, and international).
- Legal expenses – in the event that your insurance claim results in lawsuits, umbrella coverage can include coverage for the costs associated with a defense lawsuit (even in the event that the lawsuit is found fraudulent, groundless, or false).
- Protection at home and work – depending on your specific needs, umbrella insurance can protect the policyholder from liabilities on all of their properties (e.g. your business and home).
Benefits vs. Cost OF COMMERCIAL UMBRELLA INSURANCE
Commercial umbrella insurance is sometimes viewed as an unnecessary cost. However, it can be a great cost-saving tool for your company. Instead of raising the limits of your commercial liability policy, and increasing those premiums, an umbrella policy can add millions in additional protection at a minimal yearly price point.
Although umbrella insurance is not needed for a company to operate, it’s a valuable option for business owners. Additionally, supplemental umbrella insurance can serve as an attractive component to potential clients.
Companies that can benefit from commercial umbrella insurance include:
- Companies that serve clients who require higher liability limits or high net-worth clients.
- Companies with contracts require higher liability protection.
- Companies more susceptible to employer’s liability exposures.
- Organizations with prior commercial liability losses.
- Any company that can not afford to lose significant out of pocket funds associated with a liability claim.
Umbrella Insurance Exclusions
Even the most comprehensive umbrella policies have their coverage limitations. Commercial umbrella policies will not cover errors, omissions, or professional liability claims. Additionally, umbrella coverage does not apply to certain claims, such as cyber liability claims or officers liability claims.
It’s also important to note that commercial umbrella insurance is not a standalone policy. As such, it will only provide coverage for liabilities resulting from a claim that is covered by another policy (such as a general commercial liability insurance policy). The purpose of umbrella insurance is to provide additional coverage in the event a claim is not fully covered by your general commercial insurance policy.
At Petra Insurance Brokers, our team of advisors are ready to provide you with a quote for new coverage or help you review/update your existing coverage. Contact a member of our team today to find out how we can help you protect the life and business you’ve worked so hard to build.
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RAMZI GHURANI
Managing Partner