A well-equipped small business insurance policy can effectively prepare for the unexpected while keeping your digital checkout humming and everything profitable and afloat. Commercial umbrella insurance can provide an extra cushion in case your base liability insurance policy is insufficient, which can be a true lifesaver when things become incredibly tight.

If you have employees on the clock who are on the move making deliveries, there is always the chance that they could be involved in an auto accident. If multiple injuries occur, your company may be facing medical expenses that are greater than the limits of your commercial car insurance liability limits. If you have a commercial umbrella insurance policy, it kicks in to cover the excess amount.

What Is Commercial Umbrella Insurance?

Commercial umbrella insurance offers a useful layer of liability protection for your business. You may have just fulfilled your dream of a dog grooming location, a succulent and sweet ice cream parlor, or a cool online baseball card trading store.

Once a claim reaches the liability limit on any underlying insurance policy, your commercial umbrella insurance kicks in with the additional protection you need to keep your business on the move. In today’s fast-paced business climate, there are many instances in which this is practical, and provides you with the sense of stability to continue generating all-important revenue.

What Does Commercial Umbrella Insurance Cover?

Commercial umbrella insurance helps cover liability claims exceeding your underlying policy’s limits. A commercial auto insurance policy or general liability policy are solid means of protection for the business you had strived so hard to get started. A commercial umbrella insurance policy covers legal expense costs, medical bills, court judgments and settlements, and damage to anyone else’s property. Most insurance companies will write commercial policies that offer aggregate limits, ranging from $1 million to $15 million.

What is Not Covered By Commercial Umbrella Insurance?

In a day’s work, all types of businesses across the nation are loading the docks, booting up their servers, and preparing their retail staff to examine inventory. Some incidents can come up within a day’s work that is not covered for all insurance claims. A commercial property insurance policy cannot be included within the guidelines of a commercial umbrella’s insurance policy.

If your business suffers a fire that causes extreme damage to equipment such as range grills or walk-in coolers, you will need to pay for these damages with your property insurance coverage. The assistance of a commercial umbrella insurance policy will not be adequate to cover this damage that could leave your business unable to operate.

Commercial umbrella insurance policies are an excellent source of extra protection, but they will not cover all insurance claims. You may undergo an intense storm or fire that damages your business equipment and still must pay for these damages with your commercial property insurance coverage minus the much-needed assistance of your commercial umbrella policy. The amount of umbrella insurance you need depends on your specific circumstances, but covering your net worth is a very safe rule of thumb to have as a general practice.

How Does a Commercial Umbrella Insurance Policy Work?

If your company is sued for $3 million but only possesses $1.5 million in business liability coverage, your liability policy would only cover elements of your issues such as legal defense costs. Judgments and settlements would be covered up to the policy limit, which means you would ultimately be responsible for the $1.5 million shortfall of reserves. With the rising costs of legal settlements and medical expenses, having additional coverage such as this can offer the ultimate peace of mind to protect personal assets and even future earnings from being seized to fulfill a judgment. It can be very detrimental to use your funds and risk your longevity and stability. Your commercial umbrella policy can pay for liability costs above the primary liability policy’s limit.

Who Needs Commercial Umbrella Insurance?

The more interaction your business has with clients and customers makes for a greater deal of liability and risk. Many machinists, welders, and mechanics also use dangerous equipment on their jobs that pose an even greater risk. Both business types would be sensible examples of ones that could enjoy the benefits of commercial umbrella insurance limits. If you work on someone else’s property or allow the public to visit during your working hours, the potential for bodily injury claims is heightened.

How Much Commercial Umbrella Insurance Do I Need?

The amount of commercial umbrella coverage that will work best for you depends on your industry’s risks. Some insurers will write commercial umbrella insurance policies that boast aggregate limits of up to $15 million and are typically sold in increments of $1 million. A retail store that focuses on high-end design wear will have different needs compared to a business that makes its living with an efficient fleet of delivery trucks. Speaking with us here at the Alexander Insurance Agency of St. Charles will allow you to determine what coverage will be best for your business.

How Much Does Commercial Umbrella Insurance Cost?

The average cost for commercial umbrella insurance is about $40 per month, which allocates you around $1 million of valuable coverage. The amount you choose and the level of risk that your business undergoes will be crucial factors in your commercial umbrella policy’s monthly cost. Some businesses are fortunate enough to pay less than $60 per month for commercial umbrella insurance, and around 35% pay between $50 and $100 a month.

Choosing Liability Policies For A Small Business:

General liability insurance and commercial auto insurance are popular choices for small businesses, as they set in motion a plan to make concessions for the entity you worked so hard to build. Umbrella insurance is an ideal choice when unforeseen events balloon into large-scale financial disasters. Our staff here at the Alexander Insurance Agency of St. Charles has many collective years of experience with this type of coverage. We offer a solid base for moments that can demand “above and beyond” criteria!