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Commercial Umbrella

What is a Commercial Umbrella?

Commercial umbrella insurance provides a business with an additional layer of financial protection that is available through other insurance policies. A company is open to a variety of claims and judgments against it. These include:

  • Settlements and judgments
  • Legal expenses
  • Medical bills
  • Damage to other property

How Commercial Umbrella Works

The best way to explain how umbrella insurance works are by example. Suppose your company is fully insured. A person is injured in your place of business and is awarded damages. Your liability insurance should cover that. But what if the award is for $1.5 million and your liability coverage limit is $1 million? That leaves your business looking at finding $500,000 to pay the difference. However, if you have commercial umbrella insurance, that policy will cover the shortfall.

To put it another way, umbrella insurance extends the limits of your other coverages like general liability insurance, commercial auto insurance, and so on. This means that umbrella insurance is not a stand-alone type of policy. If your business does not have general liability insurance, you will not get commercial umbrella insurance.

An insurance company will issue a commercial umbrella policy with an aggregate limit. These typically range from $1 million to $15 million. That means that this will be the maximum coverage available to you under this policy. Commercial umbrella insurance does not cover every type of claim. For example, damage to your business property is not usually covered.

Do You Need Commercial Umbrella Insurance?

Every business needs it. Your business will have property, employees, stocks, vehicles, liability for services rendered, and lots more. The cost of claims can easily exceed the coverage limits of your various policies. A simple example is that of employees using their cars for work-related matters. If there is an accident, the auto insurance limits may not cover all the liabilities. Umbrella insurance will. If a claim is made against you for misleading or inaccurate advertising, this usually is not part of standard business liability coverage. However, an umbrella policy will give you protection.

How To Be Sure Of The Right Coverage

For any business, insurance is a matter of cost vs. benefit. Doing that kind of analysis requires expertise outside your sphere of business. We have been providing commercial insurance coverage to our clients for many years and understand both the business imperatives and the risks that exist. Contact us, and we will not just tell you the amount of umbrella insurance you need, but we will also explain why we have reached this conclusion and work with you to explore coverage alterations that you may feel are better for you.



Cities Served: Menlo Park, Redwood City, Atherton, San Carlos, San Bruno, San Mateo, Burlingame, Foster City, San Francisco, Brisbane, Belmont, Los Altos, Los Altos Hills, Sunnyvale, Mountain View, Cupertino, Saratoga, Half Moon Bay, San Jose, Campbell, Los Gatos, Milpitas, Santa Clara

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