Commercial umbrella insurance is all about going one step further. It’s an added layer of protection that kicks in if the very worst happens with your business insurance policies. Essentially, if you go over your payout limit, it helps cover the excess costs that you would otherwise need to pay for out of pocket.
Most business insurance policies—whether they cover commercial liability or commercial property—have a payout limit. Normally, your business would be on the hook for any expenses above and beyond this limit. This type of unexpected cost is something that could threaten the very survival of your business. A commercial umbrella insurance 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 $700,000. If you have a commercial umbrella policy in place for your business, the liability policy would pay out in full first, and then the umbrella policy would pick up the remaining $200,000.
Your commercial umbrella policy may cover the costs of legal fees, medical expenses, and damages for liability issues such as bodily injury and property damage.
There are certain risk factors to consider, including public access to your business, how often you work with your clients, and if you perform work at other locations.
The beauty of commercial umbrella insurance is that, because there’s a relatively low chance it will need to pay out, it may often be considerably cheaper to purchase than you might expect. The cost of your policy may vary depending on the size of your business, the industry you are in, and how much coverage you already have.
Commercial umbrella insurance may help you protect your assets. Contact us to learn more about your coverage options.
6851 NE Loop 820, Suite 220
North Richland Hills, TX 76180
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6851 NE Loop 820, Suite 220
North Richland Hills, TX 76180
1750 E Southlake Blvd Ste 100
Southlake, TX 76092
At Lone Star BEST Insurance, we know that choosing an insurance plan can feel overwhelming. Our mission is to help you feel comfortable and knowledgeable and to help you find plans that meet your needs!
We are licensed in Texas, Arizona and New Mexico.