When you’re in business, the last thing you want to do is lose your investment in a product or service. Fortunately, there are many ways to protect yourself and your brand from potential financial losses. One of those ways is by purchasing commercial umbrella insurance.
What is Commercial Umbrella Insurance?
Commercial umbrella insurance is a secondary layer of liability coverage that’s designed to protect your assets from large claims. It’s also a way to protect your business from claims above and beyond what you have in place through your standard business policy.
Commercial umbrella policies can provide excess liability protection up to the limits of primary policies, including personal injury protection (PIP). This means that if someone were injured due to negligence on behalf of another person or entity covered by their primary insurance, this would not affect their primary coverage as long as they had purchased commercial umbrella coverage.
Who Is Eligible for Commercial Umbrella Insurance?
- If you are a business owner, it is recommended that you have commercial umbrella insurance.
- For example, if your company loses a large amount of money and property damage due to an accident or strike, then their umbrella policy would cover those losses.
How Long Does a Commercial Umbrella Policy Last?
A commercial umbrella policy is a contract that protects your business against potential losses. The terms of the policy vary depending on the type of business you own and operate, but most can last for 1 to 2 years.
If your umbrella insurance expires before its term, you’ll need another form of coverage for up to two additional years.
How Much Does a Commercial Umbrella Policy Cost?
The cost of a commercial umbrella policy depends on many factors, including company size and industry, location and other factors. Typically the cost of your commercial umbrella policy will be lower than the underlying policies you purchase.
The average cost to buy an umbrella coverage is around 15% of your overall premium but can range from 10% up to 25%. This means if you pay $100 per month for three months ($300 total), then you’ll likely end up paying about $450 total because it covers only one month at a time.
Takeaway:
Commercial umbrella insurance provides extra protection for businesses. It is a type of liability insurance that can help protect against claims arising from bodily injury and property damage.
It also protects against other types of liability, such as defamation, malicious prosecution and libel.
Conclusion
In conclusion, if you’re in the market for business insurance , you should consider commercial umbrella insurance. It can provide protection against financial risks that are beyond your company’s control—and save you money if something goes wrong with your business. When it comes to rates and coverage, however, it’s important not to just look at one site but at a variety of options that offer similar services
