Commercial umbrella insurance provided by Cowell James Forge Insurance Group.

What Is Commercial Umbrella Insurance?

Commercial Umbrella Insurance is a type of cover that kicks in if your business exceeds the amount of liability cover that you have. This pays for anything that exceeds the coverage cap on any of your liability policies, so that you don’t have to pay out of pocket for them. But, before you purchase this, you need to know the commercial umbrella insurance coverage basics, commercial umbrella liability insurance definition, stand alone commercial umbrella insurance and a whole load of other things. You are also going to need to think about commercial umbrella insurance quotes.

How Does It Work?

You need to understand how commercial umbrella insurance works before you can purchase a policy. When you purchase a liability policy, there is usually a maximum amount of coverage that is given. If you exceed the maximum cover amount, you are then responsible for paying the rest out of your own pocket. With commercial umbrella insurance, you are not responsible for paying out of pocket, and instead this policy kicks in, taking over and paying whatever is left.

This could be damages for property damage, or bodily injuries. This goes hand in hand with some of the other insurance policies for small businesses that you will find such as general liability, workers compensation and so on. It’s important that you understand all of the limits to your policies from other insurance companies so that you can provide accurate information to your providers.

As this is a top up of sorts for liability cover, if your business doesn’t have this kind of cover already, then you aren’t going to be able to get commercial umbrella insurance.

Affordable For You

Paying out money that you don’t have because there is a limit on your insurance policy is probably not something that you ever thought you would have to do. However, if you are not protected by commercial umbrella insurance, then you would be expected to pay every single penny that was left over the limit. An example of this would be if you have a liability cover limit of 400,000. If you end up having to pay damages of 700,000, then the commercial umbrella insurance will be covering the extra 300,000.

Who Should Purchase Commercial Umbrella Insurance?

The more that you interact with people and other surroundings, the more chance you have of something going wrong. If you know that to complete the work that your business does, you or your employees have to use some kind of heavy machinery, this puts your business at even more risk. You never know when something is going to go wrong which is why you have liability insurance in the first place. If you have liability insurance, then you should purchase commercial umbrella insurance to go on top, it is really that simple.

Any business that feels it is risky enough to need liability insurance should have this type of cover as well. It is always better to have something and not need it than for it to be the other way around. Just make sure you read all of the small print before you sign your policy so that you are aware of what is and is not covered.

An Extra Layer Of Protection

When it comes to liability claims, you can never be one hundred percent sure about which way the courts are going to rule. It’s for this reason that you need an extra layer of protection to cover yourself if the damages you are made to pay is more than your policy covers. Make sure that you know what your coverage limit is on your general liability insurance before you start looking at this extra layer of protection.

Think of commercial umbrella insurance as a blanket when you put it on top of a cover. It provides that extra feeling of warmth and security, but is not always needed. When it is though, it’s always there to lend a helping hand.

Get In Touch

Get in touch with a member of the team today if you would like to find the best commercial umbrella insurance policy for you. A friendly member of our team is ready and waiting to get you started by asking you about what you require and generating you a free quote.

Get Started Today

As an independent agency, we are here to help you find the right Commercial Umbrella Insurance coverage.