Commercial Umbrella Insurance

1. Commercial Umbrella Insurance Umbrella and Excess Liability Coverage for Your Business

2. What is commercial umbrella insurance? • A commercial umbrella insurance policy provides additional liability protection over and above the coverage limits of primary policies.  • Covers for the extra expenses that include costs of: • Legal expenses • Medical payments • Damage costs

3. The three most common primary plans that umbrella liability insurance policy applies to include: • General liability insurance • Commercial auto insurance • Employers’ liability (from workers compensation insurance)

4. Excess liability insurance vs. Commercial umbrella liability • What is excess liability coverage? Excess liability coverage increases the underlying limits of a plan without additional broad coverage • The three most common underlying plans include: • employer’s liability • commercial auto • commercial general liability insurance.

5. Excess liability coverage is not applicable for: • Multiple lines of policies • Additional endorsements • Business excess liability insurance can provide coverage for: • Bodily injuries and property damage such as slips and falls • Legal lawsuit expenses involving your business • Extra protection for your commercial auto policy • Additional excess liabilities above your primary underlying policy

6. What is umbrella liability coverage? • Has broader coverages than that of excess liability. • Offers extra protection to primary plans rather than specifying and scheduling underlying policies. • Business umbrella liability coverage adds protection when the cost of claim exhausts the policy limits.

7. This coverage can safeguard your company from liability claims, including but not limited to:  • Libel and slander against the business • Legal defense costs • Reputational damage • Auto accidents • Product liability • Customer bodily injury and property damages

8. What does commercial umbrella insurance cover? • Commercial general liability (CGL) insurance: • Protects the business against third-party liability claims for property damages, bodily, and reputational injuries. • Workers compensation insurance: • Protects your business and your employees from injuries in the workplace.

9. Workers compensation insurance: • Pays for the medical bills, lost wages, rehabilitation costs, and death benefits incurred because of workplace injuries and illness. According to the Bureau of Labor Statistics, there was 5250 recorded number of fatal workplace injuries in 2018.

10. Commercial auto insurance • Protects your business from third-party claims arising from at-fault accidents as well as the insured vehicle. • Provides additional support to the liability part of the auto policy. According to data from the Federal Motor Carrier Safety Administration, 131,872 crashes took place involving large trucks in 2018, out of which recorded injuries were 64,667 and 3,835 cases were of fatal injuries.  

11. What does commercial umbrella insurance not cover? • Commercial property insurance • An umbrella policy does not provide coverage to claims related to commercial property insurance that includes office equipment and inventory in your office premises. • Errors and omissions insurance • Errors and omissions insurance is a part of professional liability insurance that protects professionals from their mistakes, causing damage to a third party.

12. Lawsuits related to employee discrimination • Umbrella insurance policy does not cover for claims and lawsuits related to unfair practices towards employees which are covered by employment practices liability insurance. • Punitive damages • If the court deems punitive damages as a punishment for a business that has carried intentional harm to another entity, an umbrella policy will not provide any coverage. • Claims already covered by primary policies: • For umbrella policy to work, your primary plans should have exhausted their coverage limits. It is not the first line of defense in case of losses.

13. Types of insurance that include commercial umbrella insurance Lawyers insurance Accounting insurance Farm insurance Entertainment insurance Food business insurance Restaurant insurance Photography insurance Nonprofit insurance Gas station insurance Landscaping insurance Contractors insurance Consultant insurance Hotel insurance Engineer insurance Handyman insurance

14. How much does commercial umbrella insurance cost? The number of employees Size of your company

15. The industry of your business Claims history Insurance carrier you choose

16. To learn more about commercial auto insurance, click on the button below: