This type of umbrella policy insurance supplements your existing General Liability and Business Property and Commercial Auto policies to cover certain catastrophic liability claims. This means that if losses exceed the limits of your general liability coverage under your General Liability and Business Property or Commercial Auto policies, an Umbrella policy may cover the remainder, up to a specified limit. Although the coverage provided under Umbrella policies vary, these policies generally cover a variety of business liability risks. Our insurance agents in California can provide you with additional information.
Why do I need Umbrella Policy Insurance?
“General liability insurance policies always state a maximum amount that the insurer will pay during the policy period. Usually these policies also list the maximum amount the insurer will pay per occurrence. For example, if a company has a $1 million occurrence cap in its liability policy and it’s successfully sued for $1.5 million, the insurer would pay $1 million and the business would be responsible for paying $500,000.
To cover these types of situations, many companies purchase umbrella liability insurance, which picks up where their general liability coverage ends. Umbrella liability covers payments that exceed their other policy’s limits, and provides additional coverage for liabilities not covered in a standard liability insurance policy.”
All Businesses Are Vulnerable
No matter the size of your company or how well it’s run, your business faces the potential of a devastating claim arising from an unforeseen event. For example, let’s say you own a retail store or apartment building, and a customer trips on the carpet and hits his head, sustaining serious brain injury. You could be potentially liable for millions of dollars in medical and other payments.
Would that entire sum be covered by your existing business liability insurance? Could your business savings and/or revenue make up for the difference in what’s not covered? Umbrella Coverage goes above and beyond basic business liability insurance limits, offering up to $10 million of additional funds to manage situations just like this.
If you are a small business owner, you might think they can’t take what you don’t have. Think again—a court can seize the business assets you currently have and even allocate future earnings to satisfy a judgment against you. It’s never too soon to invest in umbrella coverage.