What is Commercial Umbrella Insurance? Do I need it?

As a small business owner, you have a lot on your plate. Between managing your day-to-day operations, keeping up with industry trends, and trying to grow your business, the last thing you want to worry about is the financial risk of a lawsuit.

Enter commercial umbrella insurance. This type of insurance provides an extra layer of protection for your business, covering you in the event that a lawsuit exceeds the limits of your other liability policies.

Imagine, for example, that one of your employees causes a car accident while driving a company vehicle. If the damages exceed the limits of your auto insurance policy, your commercial umbrella insurance would kick in to cover the additional cost. Or, let's say a customer slips and falls on your property and decides to sue. If the damages exceed the limits of your general liability insurance, your commercial umbrella policy will provide coverage.

In short, commercial umbrella insurance is a safeguard for your business, protecting you from the financial burden of unexpected and potentially costly legal claims.

But what does this type of insurance actually cover? Commercial umbrella insurance typically provides coverage for a wide range of claims, including personal injury, property damage, and advertising injury. It can also provide coverage for defamation, libel, and slander.

So, how do you know if your business needs commercial umbrella insurance? The first step is to assess your overall risk profile. Consider the nature of your business, the potential for liability, and the financial resources you have available to handle a lawsuit.

If you have a high-risk business, such as a construction company or a restaurant, or if you have significant assets to protect, it's a good idea to consider purchasing a commercial umbrella policy. On the other hand, if you have a low-risk business and few assets, you may not need this type of insurance.

Ultimately, the decision to purchase commercial umbrella insurance is a personal one, and it's important to consider your unique needs and circumstances carefully. But, as a business owner, it's always better to be safe than sorry. Don't let the fear of a lawsuit keep you from pursuing your business goals. Invest in a commercial umbrella policy and sleep a little easier knowing that you have an extra layer of protection.

If you would like to discuss your options feel free to call me at 516-534-3554 or email: [email protected].