Businesses and wage earners need an “umbrella policy” also called an “excess liability policy”. These policies kick in when your personal or your business liability policy limits max out.
First, let’s look at excess commercial liability insurance known also as a Commercial Umbrella Policy. These policies protect you, your business and its employees from legal liability beyond the limits of your primary liability policies. It is an added level of insurance over your commercial general liability, Business Owner’s Policy, Business Auto Insurance, and employers liability coverage. A commercial umbrella policy has three purposes:
1.It continues to pay for your legal liabilities, including legal defense when the limits of any of your primary liability are met or exceeded due to claims.2.It takes over when the total limits of a claim of an underlying policy reach exhaustion because of earlier claim payments3.It provides protection against certain liabilities for which you have no coverage, subject to the assumption by the named insured of a self-insured retention.
These uncovered incidents include claims for:
•Contractual liability both written and oral•Liquor law liability•Non-owned aircraft liability•Slander and libel•Much More
A total commercial liability umbrella plan covers for almost anything you think of; in fact you are buying insurance for some situations you will never encounter.Nevertheless, if your business interacts with the public in any way; customers visiting your place of business, sales people visiting your premises, delivery people making a delivery employed or contracted sales people visiting clients or customers. Other exposures that protect your business from with an umbrella policy is from liability stemming from products you sell or produce.
The greater the risks facing your business the more important a commercial umbrella policy is. Schedule a meeting with your business insurance advisor to discuss if you need and how much you need, in umbrella coverage.
Personal Umbrella Coverage
Most people who own homes and cars have separate liability insurance policies, the first is homeowner’s insurance and the other is automobile liability insurance. Just as a commercial umbrella policy extends your policy limits so does a personal liability umbrella. For under $1 thousand dollars each year, you can add the protection of a personal umbrella policy with several million dollars of protection.. It kicks in when either of your primary liability coverages end (usually you need $100 k/ $300 k limits on both homeowners and auto liability). It also covers some things that are not typically covered such as slander, libel, and more.
When deciding how much personal umbrella insurance you need, consider buying an amount at least equal to your net worth. Speak with your personal insurance advisor to make sure you buy the policy that is best for you.
