Commercial Umbrella Insurance
Running a business means that you have taken on a certain level of risk. While you can take measures to minimize this risk, there's no way to completely prevent all risks related to your business. But although you can't prevent all risks, you can protect yourself against them.
The purpose of general liability insurance for your business is to protect you in the event of an accident or issue where you could be held responsible. An example of an injury where you would protected is if one of your employees gets hurt while they are at the Christmas party for your business. An example of an issue where you would be protected is if one of your clients sues your business because they don't believe the level of service your business provided was what they paid you to give them. With both of these examples, your general liability policy should provide you with all the protection you need. However, there is a chance that your policy won't have enough protection to fully cover you. If this happens, you need commercial umbrella insurance to provide the additional coverage that your general policy doesn't offer.
Commercial umbrella insurance is an extra layer of protection for your business. It is used to fill in the gaps that may be present in your other policies. With either of the previous examples, let's say that your general liability policy provides one million dollars worth of protection. However, the first example exposes you to $1.25 million worth of liability, while the second is $1.5 million worth of liability. With a commercial umbrella insurance, the additional $250,000 or $500,000 in these examples that isn't covered by your general liability policy will be covered by a commercial umbrella insurance policy. In addition to these examples, commercial umbrella insurance can provide you with protection in the event of issues like pollution damages or product recalls.
Because commercial umbrella insurance is designed to be an extra layer of protection, it works in conjunction with your existing insurance policies. Since your business most likely has a physical location, you have probably protected it by securing property insurance. Having property insurance for your business means that if your office or store suddenly goes up in flames, the cost of repairing your property will be covered. However, what happens if during the course of the fire, one of your employees or a customer is seriously injured? Not only will you feel terrible, but you will be exposed to a significant liability that isn't covered by your property insurance. Fortunately, in this situation your umbrella insurance would take care of the injury liability while your property insurance would cover your actual office or store damage.
When you start looking for a commercial umbrella insurance policy, there will be several factors that determine the rates you are quoted by different insurance companies. The first factor is whether or not you already have an insurance policy with the company. You'll generally be able to get a better commercial umbrella insurance rate from an insurer you already work with than you'll get from an insurer where you'll be a new client. Another factor is your personal level of trust as determined by the insurance company. If you have a low credit score or any kind of criminal record, you are going to face paying a higher rate than a business owner who has a high credit score and no criminal record.
By protecting yourself and your business with commercial umbrella insurance, you can ensure that all of the work you've put into building your business won't be ruined by an accident or lawsuit from a disgruntled client.