Commercial umbrella insurance is about going one step further for an added layer of protection if the very worst happens with your business insurance policies.
Most business insurance policies–whether they cover commercial general liability or commercial property–have a payout limit. Normally, your business would be on the hook for any expenses above and beyond this limit. A commercial umbrella policy kicks in only if your main business insurance policy reaches the payout limit. At that time, the commercial umbrella policy would pay out the remaining costs.
For example, let’s say you have a liability insurance policy of $500,000 for your business, but you must pay damages of $750,000. If you have a commercial umbrella policy in place for your business, the liability coverage policy will pay out in full first, and then the umbrella policy will pick up the remaining $250,000.
Because there’s a relatively low chance it will need to pay out, it’s often considerably cheaper to purchase than you might expect. Commercial umbrella insurance is a great way to further protect your assets. Reach out, and we’ll help you to determine if it’s right for your business.
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