Liability policies have limits; if a covered claim exceeds them, your business could owe the difference. Normally, any costs that exceed this cap would be the responsibility of your company. This kind of unanticipated expense could endanger your company’s very existence.

A commercial umbrella pays after the underlying liability limits are used up, up to the umbrella limit and subject to its terms and exclusions.

What’s a Commercial Umbrella Insurance example?

For illustration, suppose your company has a $500,000 liability insurance policy, but you still have to pay $700,000 in damages. If your company is covered by a commercial umbrella policy, the liability insurance coverage will pay out in full first, and the umbrella policy will subsequently cover the remaining $200,000 if necessary. This is a simplified example; what the umbrella pays depends on its terms.

The appeal of umbrella insurance is that, despite the minimal likelihood that it will be required to pay out, it is frequently far less expensive to buy than you may anticipate.

Contact a licensed agent to go over commercial umbrella options and limits.