Commercial Umbrella Liability

The Commercial Umbrella Liability policy is a relatively rare type of insurance coverage for the average business. It has been seen as only needed by the very large businesses. Liability claims and court decisions involving millions of dollars are no longer uncommon and any business can be found legally responsible for this type of judgment.

Can your business afford a payment of millions of dollars? An Umbrella Liability policy could be the difference between bankruptcy and an on-going business venture. The Umbrella policy would take over where the other business policies stopped, providing defense coverage and additional limits to pay large judgments.

Contact Fidelity Amerisurance Insurance Services to discuss securing this valuable form of liability coverage. It could help preserve your business in the event of a liability claim. Most businesses eligible for underlying policies are eligible for a Commercial Umbrella policy.

Commercial Umbrella policies work exactly as their name implies. They provide a layer of protection above that afforded by underlying policies. When losses exceed the coverage limits of standard Business Auto, Business Protector or Commercial Package policies, Commercial Umbrella policies take effect to cover the balance (subject to policy limits and other conditions).

A great deal of coverage is provided through a Commercial Umbrella policy for a comparatively minimal premium. Coverage limits typically range from $1 million to $10 million.

Umbrella liability insurance can be purchased separately on the top of liability limits in your Business Owners Package. When underlying liability insurance is purchased as part of a BOP, the coverage limits are generally lower, so higher risk companies that need more coverage may choose to purchase umbrella liability insurance as a separate policy.

The amount of coverage a business needs depends on a couple of factors. Company owners should first consider the amount of risk associated with their business. The volume and success of litigation varies dramatically from state to state. If your business is in California that seems to favor high damage awards to plaintiffs. You might consider more liability protection.

Taking precautions before an accident can help to keep insurance premiums down!

Following are steps you can take to lower the probability of a liability insurance claim:

• Set a high standard for product quality control.
• Be sure all company records are complete and up-to-date.
• Make sure employees are properly trained.
• Check with us or another insurance agent to see what safety steps he/she will recommend for your particular situation.

Read more on California Workers Compensation Insurance

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