Why Commercial Umbrella Insurance Matters   

Commercial umbrella insurance may extend the limits of some liability policies, such as general liability, commercial auto or employer’s liability insurance. If your business faces a claim that exceeds the limits of your primary insurance policies, an umbrella policy may cover the remaining costs.

Commercial Umbrella Insurance for Catastrophic Losses

Even with solid coverage, certain events can lead to catastrophic losses. Here are a few scenarios where commercial umbrella insurance can make a difference:

• A customer is seriously injured on your premises, and the resulting lawsuit exceeds your general liability limits.
• An employee causes a multi-vehicle accident while driving a company vehicle, resulting in extensive injuries and property damage.
• A product you sell causes widespread harm, and the claims quickly surpass your standard liability coverage.
• Your company experiences a data breach, and the resulting lawsuits and notification expenses surpass what your cyber or general liability policy can cover.

Pairing Commercial Property and Umbrella Policies for Enhanced Financial Protection

Commercial property insurance is designed to cover damage to physical assets like buildings, inventory and equipment. It may cover damage due to fires, vandalism or other covered events. But when those events lead to lawsuits or third-party claims, property coverage alone doesn’t cover the legal fallout.

Say a fire spreads from your building to a neighboring business, and they sue for damages. Your general liability policy may respond to the claim, but if the costs exceed your policy’s limit, umbrella coverage may help pay the remaining amount.

By pairing commercial property insurance with umbrella coverage, you’re addressing two types of risk: damage to your assets and liability exposure from incidents that affect others. Together, they can handle direct losses and the legal consequences that can follow.

Secure a Policy Today

Hall-Green Agency can help you assess your exposures and build a suitable financial protection plan. Contact us today to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.