A commercial umbrella insurance policy is a valuable tool for businesses of all sizes. It provides an extra layer of protection against unexpected lawsuits and judgments that could exceed the limits of your underlying liability insurance policies. Let’s continue reading to discuss what commercial umbrella insurance is, why you may need it, how it protects you, and how much it costs.
What Is Commercial Umbrella Insurance?
A commercial umbrella insurance policy is a type of liability insurance that provides coverage above and beyond your underlying liability policies, such as general liability, professional liability, or commercial auto liability. It acts as a safety net, protecting your business from catastrophic financial losses due to lawsuits and judgments.
Why You May Need Commercial Umbrella Insurance?
There are several reasons why you may need commercial umbrella insurance. They are as follows:
- Limited underlying coverage: If your underlying liability policies have low coverage limits, an umbrella policy can provide the additional protection you need.
- High-risk industry: If your business operates in a high-risk industry, such as construction or healthcare, you are more likely to be involved in a lawsuit.
- Large claims: Even if your underlying coverage is adequate, a single large claim could deplete your policy limits.
- Asset protection: Umbrella insurance can help protect your business’s assets from being seized to satisfy a judgment.
How Does Umbrella Insurance Protect You?
Umbrella insurance protects you by the following:
- Increasing your coverage limits: It extends your coverage limits beyond those of your underlying policies.
- Covering defense costs: It helps pay for legal fees and other defense costs associated with a lawsuit.
- Protecting your assets: It can help shield your business’s assets from being seized to satisfy a judgment.
How Much Does Umbrella Insurance Cost?
The cost of umbrella insurance varies depending on several factors, including:
- Your business’s size and industry.
- Your underlying coverage limits.
- Your claims history.
- The state where you are located.
However, umbrella insurance is generally affordable, and the cost is often worth the financial relief it provides.
McCarty Insurance Agency: Your Partner for Commercial Umbrella Insurance Policy
If you are interested in learning more about commercial umbrella insurance or getting a quote, consult our experts at McCarty Insurance Agency. They can help you find the right policy to protect your business. Contact us today to get started. Call us at (559) 324-1421 for a quick consultation with one of our insurance experts.
