Commercial Umbrella Insurance
Commercial Umbrella coverage is a supplement to commercial General Liability Insurance. It provides protection that may not be fully covered through your General Liability policy. Commercial Umbrella Insurance will also cover you when your company exceeds the limits on an underlying policy, for example: Employer’s liability and hired and non-owned auto liability policies.
Commercial Umbrella policy coverage types and amounts will vary depending on the issuing company. In the situation where you feel that you may be susceptible to theft or an accident that your General Liability policy may not provide adequate coverage, it may be best to consider Commercial Umbrella Insurance Coverage.
How Does Umbrella Insurance Work?
Umbrella insurance can come into play if you are found liable and need to pay damages, or if you are sued and need to pay for your legal defense – even if the result is that you are not found to be responsible. An umbrella policy only pays once your basic liability limits have been exhausted or the claim is excluded from the basic liability coverage. The claim will be made against you, the policyholder, on behalf of the wronged party. Then your insurance company may pay the settlement amount up to the limits of your coverage. If the settlement amount exceeds your coverage limits, you are responsible for paying the remaining amount out of pocket.