Commercial Umbrella Insurance
A commercial umbrella insurance policy is an extra layer of liability insurance coverage that goes beyond the limits of the insured's business vehicle insurance and commercial general liability insurance policies. It provides an additional layer of security to businesses who are at risk of being sued for damages to other people's property or injuries caused to others in an accident. It also protects against libel, vandalism, slander, and invasion of privacy.
- A commercial umbrella insurance policy is a type of commercial liability coverage that goes above and beyond the amount that the underlying business vehicle or commercial general liability insurance offers.
- To purchase a commercial umbrella insurance policy, the business must have a business vehicle or commercial general liability policy first; the umbrella policy kicks in after the regular coverage has been exhausted.
- Candidates for commercial umbrella insurance include companies that possess considerable assets or engage in potentially hazardous endeavors or activities that could increase their risk of being sued.
How a Commercial Umbrella Insurance Policy Works
The added coverage provided by a commercial umbrella insurance policy is most useful to high net worth companies who own a lot of assets and are at a risk of being sued.
The policyholder who wants to purchase a commercial umbrella insurance policy is required to carry a minimum amount of underlying insurance coverage such as $100,000/$300,000 bodily injury/$100,000 property damage for business vehicles and $500,000 for commercial general liability insurance.