Commercial Umbrella insurance is a type of casualty insurance and is sometimes referred to as Umbrella Liability Insurance. It is an insurance type beneficial for many business owners as it provides them with additional coverage on top of their current insurance policy.
This extra coverage can help pay for costs that exceed the liability limit on a policy. It can be applied to many primary insurance policies, such as auto liability and general liability.
If you don’t have commercial umbrella insurance and a claim is higher than your liability limit, you’ll have to pay the rest of these expenses out of your own pocket. This can include paying the costs of legal fees, medical bills, damage to another person’s property, judgment fees, and also settlement fees.
Not only can these policies cover costs that exceed the liability limit on your insurance policy, but they can also cover gaps in your existing coverage. Commercial umbrella policies are, in essence, an extra level of protection for your business.
Although commercial umbrella insurance is a highly popular insurance product among business owners, they are not required by law. If you’d like more information about these policies and how they can help protect your business and its assets, speak with our team today.
What Does Commercial Umbrella Insurance Cover?
With all the available commercial policies available, it can quickly become confusing knowing which ones you need, and which ones aren’t relevant for your business. Many people aren’t aware that a commercial umbrella policy is not a replacement for business insurance coverage overall.
Instead, it offers additional coverage on top of your existing policy. So, if you currently don’t have any form of business insurance, you will need to take out a policy before looking into umbrella insurance.
It should be noted that commercial umbrella insurance differs from personal umbrella insurance. A personal umbrella policy offers additional coverage for your home insurance and auto insurance, whereas commercial umbrella policies are explicitly designed for business-related insurance products.
Commercial Umbrella insurance can offer additional coverage for the following policies:
• Commercial Auto
• Workers Compensation
• General Liability
• Employee Benefits Liability
If you’re a business owner and you aren’t sure whether you have the right coverage in place or enough coverage in place, reach out to our insurance agents today. We will take the time to get to know you and your business and ensure you have the right policies in place to safeguard your business.
Is Umbrella Insurance Right for My Business?
As previously mentioned, there is a wide range of insurance products available to business owners. As such, it can be overwhelming when you start researching your coverage options.
Like every other type of business insurance, an umbrella policy may be incredibly beneficial for some business owners and may not be necessary for others.
So, what types of businesses can benefit from Commercial Umbrella Insurance?
• If customers and clients frequently visit your business location
• If you own a small business in an industry where there is an increased risk for employees
• If your business operates on someone else’s property
The Benefits of Commercial Umbrella Insurance
In this day and age, businesses offer a wide range of services. You may run a business out of a warehouse, or your services may require you to visit the homes of clients and customers.
If your business falls under the latter, then a commercial umbrella policy may be right for you. This is due to the increased risk of damaging your customer’s property during your visit. It doesn’t matter how careful you or your employees are; sometimes accidents are unavoidable.
If you cause an excess amount of damage and the cost of repairs exceeds your liability coverage, you’ll be paying for these expenses out of your own pocket. Whereas, with an umbrella policy, these additional costs will be covered.
The same can be said for people who run businesses that customers frequently visit, for example, a coffee shop or barber. If you run a business like this and a customer injures themselves while on your business property, they could take out a claim against your business.
If your liability coverage doesn’t cover the entire cost of this claim, then, once again, you’ll be paying out of pocket for the remainder of these fees. This can quickly become a costly thing, especially when legal fees are borough into the mix. That is why so many business owners take out a commercial umbrella policy to protect themselves in these instances.
If your business is hit with a costly claim, there’s no telling how big of a financial hit your business will take. A claim against your business could mean the difference between your business being a success or filing for bankruptcy. Don’t let this happen to you; call Texas Insurance Agency today.
Affordable and Reliable Commercial Umbrella Coverage
As a business owner, you may be inclined to take out an umbrella policy, but you also may be worried about the cost of doing so. Here at Texas Insurance Agency, we are passionate about helping business owners safeguard their business. After all, we are business owners ourselves. That is why we make it easy for you to find the coverage you need at a price that’s right for you.
Every business is different. Consequently, the policy needed by one business owner will differ from that of another. No matter what policies you need to safeguard your business, you can rely on our insurance agents to help.
If you’re a new business owner and are looking to protect your business, you may be finding it difficult to determine which policies you need and which you don’t. If that is the case, give us a call, and our insurance experts will gladly help. Additionally, if you currently have a commercial insurance policy in place but are looking for better coverage, we can help with that too.
Having commercial umbrella insurance doesn’t mean anything if you don’t have the appropriate underlying policies. If you’d like to discuss this further with an experienced insurance agent, give us a call.
Our team will happily talk you through your options and help you achieve the peace of mind that comes with having the right coverage in place.
