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Umbrella Insurance

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What Is Umbrella Insurance?

When unanticipated situations arise, Commercial Umbrella Insurance offers an additional level of financial security.

Umbrella coverage provides additional coverage to fill in the gaps between existing policies.

It comes into play when the coverage on your existing policies become depleted.

Umbrella Insurance is like a safety net for unexpected liability costs.

What Umbrella Insurance Is All About:

What Does Umbrella Insurance Cover?

Frequently Asked Questions

Who Is Covered by Umbrella Insurance?

Your Business and Employees - An umbrella policy provides additional limits of insurance above the base coverage of the underlying policies. Often underlying policies include General Liability, Workers Compensation and Commercial Auto.

For example, if you have $1M in liability limits for a base policy and a $5M umbrella, then you have a total of $6M in liability insurance for any one claim.

Do I Need Umbrella Insurance?

Business Umbrella Insurance is not generally a requirement for businesses. After all, some business owners may consider this policy to be an unnecessary expense. However, there are some situations in which having this type of policy may be considered especially advantageous:

  • If you're in a high-risk or high liability industry: Professionals who run high risk or high liability businesses or have employees who are in danger, such as the legal trade, may invest in Umbrella Insurance to protect themselves against professional liability suits.

  • If you're interested in expanding your existing coverage limits: Policyholders who want to extend the coverage of multiple policies may find it both more convenient and less expensive to expand them all at once through an Umbrella Insurance policy.

  • If you're concerned about potential gaps in your coverage: Umbrella Insurance policies offer an additional layer of protection by providing insurance for liability issues that may fall into coverage gaps.

How Much Does Umbrella Insurance Cost?

The premiums for a Commercial Umbrella Insurance policy will vary significantly based on the amount of coverage desired and the number of policies overwritten.

This insurance policy can cover a few core insurance policies, or it can be designed to cover every insurance policy the business maintains. The larger the company, the more expensive the Commercial Umbrella Liability Insurance cost will be.

The key factors for cost are based on the size of the business, the umbrella coverage limits, and the policies that are in place.

However, the mitigation of potential risks helps justify the Umbrella Insurance policy cost An Umbrella Insurance policy quote is the best way to determine how much your business will pay.

How does Umbrella Insurance work with your other policies?

The reason you want Umbrella insurance is to have an extra limit of liability in case the limits on your other policies are exhausted. Your assets need to be protected, and this is an amazing way to do so.

Additionally, there may be times where the other insurance policies exclude something that the Umbrella does not.

What is the difference between Excess and Umbrella insurance?

Umbrella insurance policy can often provide coverages that the underlying policies do not.

An Excess Liability insurance policy will not provide any extra coverages, it only provides an additional limit of liability over what your other policies cover. It is important that you know which one you have.

What Are the Limits of Umbrella Insurance?

A Commercial Umbrella Insurance policy has a single coverage limit through which all associated insurance policies may draw. Though multiple insurance policies may be able to pull from an Umbrella Insurance policy, they will all deplete the total amount of additional coverage offered.

If a company has a $5 million Commercial Umbrella Insurance policy and must initiate a $1 million excess liability Commercial Auto insurance claim against it, it will only have a remainder of $4 million in coverage for any subsequent claims.

How much does a 1 million dollar Umbrella Policy cost?

Each Umbrella insurance policy will vary in price based on your operations and the underlying policy premiums. Work with an educated insurance advisor to get you quotes from several companies so you can compare your options.

Are You Ready to Get Covered?

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(646) 844-9933