There are always risks involved when running a business – disasters, accidents, and losses are just some of them. Bad things can happen anytime, and that is why business owners need to purchase insurance policies that would help them protect their assets and investments.
There may be instances, however, when your insurance won’t be enough. When the unexpected happens, there’s no way of telling how much coverage you need to handle the damages. This is where business umbrella insurance comes in.
Umbrella insurance for business offers additional financial security. The policy provides added liability coverage, which supplements your existing primary insurance policies when claims exceed the limit. Think of it as a safety net for unforeseen liability costs.
Companies of all scales and sizes can benefit from a business umbrella insurance policy. If you’re interested in extending your liability coverage and gap protection, speak with one of Bennett and Porter’s insurance experts.
Business Umbrella Insurance Coverage
While an Umbrella business insurance is meant to cover claims that go beyond the limits of an eligible policy, you can’t apply it to all types of insurance. Like an umbrella, it cannot cover everything. Typically, umbrella insurance covers three underlying liability policies:
- General Liability Insurance
- Employer’s Liability Insurance
- Commercial Auto Liability Insurance
On the other hand, the coverage cannot be applied to:
- Property Insurance
- Professional Liability Insurance
- Expenses already covered by an underlying policy
Remember that Business Umbrella Insurance is not a standalone policy. It cannot cover claims and expenses unless you have the appropriate underlying policy in place.
Business Umbrella Insurance Cost
Several factors affect the cost of umbrella insurance premiums – the carrier, the policy limits, and the extent of coverage.